403
Sorry!!
Error! We're sorry, but the page you were
looking for doesn't exist.
IMF approves new 2-year flexible credit line for Chile valued at USD13.8B
(MENAFN) The International Monetary Fund (IMF) has approved a new two-year flexible credit line for Chile, valued at USD13.8 billion. This decision reflects Chile's strong economic fundamentals, solid institutional policy frameworks, and its sustained track record of robust macroeconomic policies. The IMF highlighted Chile’s favorable economic conditions as a key factor in qualifying for this flexible credit line.
IMF Deputy Managing Director Bo Li noted that the near-term economic outlook for Chile has improved, driven by a rebound in mining exports and a recovery in consumer spending. Li emphasized that the Chilean government’s reform efforts are aimed at invigorating the economy while making it more inclusive and environmentally friendly. Key initiatives include speeding up investment permits, leveraging opportunities from the global green transition, increasing revenue through improved tax compliance, and strengthening social security systems.
Despite these positive developments, Li also pointed out that Chile's economy remains vulnerable to several external risks. These include the potential for a prolonged high-interest rate environment in the US, an economic slowdown in China and other major trading partners, and the escalation of regional conflicts around the world. These factors could impact Chile’s economic stability and growth prospects.
This new arrangement marks Chile’s third flexible credit line from the IMF, following previous agreements made in May 2020 and August 2022. This continued support reflects the IMF’s confidence in Chile’s economic management and its commitment to supporting the country's financial stability amid ongoing global uncertainties.
IMF Deputy Managing Director Bo Li noted that the near-term economic outlook for Chile has improved, driven by a rebound in mining exports and a recovery in consumer spending. Li emphasized that the Chilean government’s reform efforts are aimed at invigorating the economy while making it more inclusive and environmentally friendly. Key initiatives include speeding up investment permits, leveraging opportunities from the global green transition, increasing revenue through improved tax compliance, and strengthening social security systems.
Despite these positive developments, Li also pointed out that Chile's economy remains vulnerable to several external risks. These include the potential for a prolonged high-interest rate environment in the US, an economic slowdown in China and other major trading partners, and the escalation of regional conflicts around the world. These factors could impact Chile’s economic stability and growth prospects.
This new arrangement marks Chile’s third flexible credit line from the IMF, following previous agreements made in May 2020 and August 2022. This continued support reflects the IMF’s confidence in Chile’s economic management and its commitment to supporting the country's financial stability amid ongoing global uncertainties.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.
Comments
No comment