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IMF raises credit line for Colombia to $17.2 billion

Christian Fernsby ▼ | September 28, 2020
The International Monetary Fund (IMF) has raised by $6.5 billion a flexible credit line offered to Colombia to about $17.2 billion, aiming to help the country cope with the economic effects of coronavirus.
Colombia road
Billions   Colombia road
“The augmentation was approved in light of Colombia’s continued qualification with very strong institutional policy frameworks, track record of economic performance and policy implementation, and against a backdrop of higher external risks and a larger than expected adverse impact from COVID-19 pandemic,” the Washington-based crisis lender said in a statement.

Topics: Colombia

deputy IMF managing director Antoinette Sayeh said in a statement that Colombia’s downturn was deeper than expected and the country is set for its worst recession on record.

“The augmentation of access under the current FCL arrangement will help Colombia manage heightened external risks, protect ongoing efforts to effectively respond to the pandemic, continue to integrate migrants from Venezuela, foster inclusive growth and reduce external vulnerabilities,” she said.

IMF mission chief for Colombia Hamid Faruqee said the country’s economy is expected to shrink 8.2 per cent this year, worse than the 2.5 per cent drop originally forecast.

“We do expect growth to rebound,” he said, predicting GDP increasing four per cent next year.