Monday , January 17 2022

COVID-19: IMF approves establishment of  Short-term liquidity line for countries



The International Monetary Fund (IMF) has approved the establishment of a Short-term Liquidity Line (SLL) to further strengthen the global financial safety net as part of the Fund’s COVID-19 response.

Ms. Kristalina Georgieva, Managing Director of the IMF said this in a statement issued on Thursday.

READ ALSO: LCCI Urges Govt to Suspend 7.5Per Cent VAT

Georgieva said the facility was 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 these cases, the Short-term Liquidity Line would provide revolving access of up to 145 per cent of quota.

“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.” she added.


About Bukola Olanrewaju

Check Also

Absa to Accelerate Creation of Trade Finance Solutions for SMEs

Absa to Accelerate Creation of Trade Finance Solutions for SMEs

The issue of access to finance in the Small and Medium Enterprises (SMEs) in Africa …

Leave a Reply

Your email address will not be published. Required fields are marked *