IMF Managing Director Kristalina Georgieva.

She said the IMF Executive Board 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 for those in need of short-term moderate balance of payments support. In these cases, the Short-term Liquidity Line will provide revolving access of up to 145 percent of quota. The IMF Chief said the Short-term Liquidity Line will further strengthen a country’s liquidity buffers and thus help in managing liquidity pressures. Complementing other agencies 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.