IMF board approves creation of new short-term liquidity line

The International Monetary Fund (IMF) announced on Wednesday that its executive board had approved creation of a new short-term liquidity line to help member countries with strong fundamentals deal with the new coronavirus pandemic.

IMF Managing Director Kristalina Georgieva said the facility would provide a revolving and renewable backstop for member countries with very strong policies and fundamentals, who needed short-term and moderate support with their balance of payments.

She said the instrument would allow the Fund to provide revolving access of up to 145 percent of a country's quota, filling "a critical gap in the Fund's toolkit."