ISLAMABAD, Apr 16 (APP):The International Monetary Fund (IMF), Managing Director Ms. Kristalina Georgieva said that the fund’s Executive Board had approved the establishment of the Short-term Liquidity Line (SLL) to further strengthen the global financial safety net as part of the Fund’s COVID-19 response.
The facility is a revolving and renewable backstop for member countries with very strong policies and fundamentals in need of short-term moderate balance of payments support, she said in a press statement received here Thursday.
In these cases, the Short-term Liquidity Line will provide revolving access of up to 145 percent of quota, she added.
“The Short-term Liquidity Line will strengthen further a country’s liquidity buffers and thus help in managing liquidity pressures. Complementing other instruments during the current crisis, the facility will fill a critical gap in the Fund’s toolkit and help to facilitate a more efficient allocation of resources,” the statement added.
