• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Chile’s new short-term liquidity line to support resilience and recovery

3 years ago
in Economy, Features, highlights, Home, home-news, latest News
3 min read
0 0
0
57
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Chile’s new short-term liquidity line to support resilience and recovery

Chile has rapidly recovered from the COVID-19 crisis after a policy response that included an effective vaccination campaign and wide-ranging stimulus measures.

As part of its strategy to support resilience, Chile is now accessing the IMF’s Short-term Liquidity Line (SLL)—the first country to benefit from this liquidity backstop—and exiting the Flexible Credit Line (FCL).

In an interview with Country Focus, Rosanna Costa, Governor of the Central Bank of Chile, and Ana Corbacho, IMF Mission Chief, talk about the country’s comeback from the pandemic and how the new liquidity line is expected to help Chile achieve its economic agenda and manage risks.

Chile’s economy recovered very fast from the pandemic. What policies helped achieve this outcome?

Governor Costa: Chile entered the pandemic with a healthy economy, a solid fiscal position, and a sound financial system. The very fast recovery was due to the extensive vaccination campaign and an effective economic policy response to the pandemic that was swift and comprehensive, and anchored in very strong policy and institutional frameworks.

Chile also had significant buffers bolstered by its access to the FCL. The government’s multi-year fiscal package has helped to safeguard health, protect incomes and jobs, support credit, and buttress the recovery.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

To support liquidity, the Central Bank of Chile undertook monetary stimulus and unconventional measures, and adjusted financial sector policies to facilitate the flow of credit, especially to households and small and medium-sized enterprises.

Rapid Recovery

Chile is now successfully exiting the FCL. What is the role of the new SLL in the country’s economic strategy?

Governor Costa: Chile started preparing the exit strategy from the FCL ever since it gained access in May 2020. As part of this strategy, the Central Bank of Chile purchased international reserves for a total of US$7.4 bn. Chile’s external position was further strengthened by the IMF’s general allocation of Special Drawing Rights, the central bank joining the Fondo Latinoamericano de Reservas (FLAR), and the country’s access to the US Federal Reserve’s REPO FIMA.

Considering these tools, the normalization of the exceptional measures implemented during the pandemic, and the lower risks perceived in relation to the public health emergency, the central bank decided to access the SLL to complement its sources of external liquidity.

Chile is the first IMF member country receiving an SLL since the facility was created in April 2020. What made Chile a good candidate for the liquidity line and how will it support Chile’s resilience?

Ana Corbacho: The SLL is designed to be a liquidity backstop for members with very strong policy frameworks and fundamentals that face potential, moderate, short-term balance of payments needs. It is an innovative instrument that provides predictable, revolving, and renewable liquidity support in foreign exchange.

Chile is an excellent candidate for the SLL. It has very strong economic fundamentals and institutional policy frameworks, has shown a sustained track record of implementing very strong policies, and the authorities are committed to maintaining very strong policies in the future.

Policy frameworks are anchored in a well-established structural fiscal balance rule, credible inflation targeting with a free-floating exchange rate, and a sound financial system supported by effective regulation and supervision. These features have sustained Chile’s resilience even in the face of very large shocks.

The SLL will complement existing buffers, make available predictable and revolving liquidity support, and is a signal of confidence in Chile’s very strong fundamentals and policies. By supporting Chile’s resilience and capacity to respond to shocks, the SLL will also help maintain macroeconomic stability and lay the foundations for sustained and green growth to the benefit of the Chilean people.

Ample Buffers

Tags: ChileChile’s new short-term liquidity line to support resilience and recoveryCovid-19IMF
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.