Colombia Eyes IMF Credit Line

Colombia has indicated interest in obtaining a 2-year flexible credit line (FCL) for SDR3.9bn ($6.1bn) from the IMF. John Lipsky, first deputy managing director of the IMF, says he welcomes Colombia’s interest. “I…intend to move ahead rapidly in seeking approval by the fund’s executive board of Colombia’s request in early-May,” he says. The IMF forecasts that Colombia’s GDP will grow 4.6%, supported by strong private consumption and an expected upturn in the world economy. However, it is unclear how resilient and strong the global economic recovery will be and an adverse shock to global growth could impact Colombia’s economic growth, according to the IMF. The FCL is an instrument available to IMF member countries deemed to possess very strong fundamentals, policies, and track records of policy implementation.