On May 12, the International Monetary Fund received a request for a US$23.8 billion credit line from the nation of Chile. IMF managing director Kristalina Georgieva also intends to recommend the approval of the credit line on the basis of the country’s strong economic fundamentals.

“The IMF Executive Board met today in an informal session to discuss a request from the Chilean authorities for a two-year arrangement under the Flexible Credit Line (FCL) […]The Chilean authorities intend to treat the credit line as precautionary,” read the statement

Chile’s central bank recently revealed a 3.5% decline in economic activity in March compared to a year earlier due to the global pandemic. In February, however, a 2.7% rise was seen after ongoing protests over inequality. A formal decision to endorse the step is expected to be made by the IMF board in the coming weeks.

As of May 13, Chile has recorded a total of 31,721 confirmed novel coronavirus (SARS-CoV-2) cases and 335 deaths.

Chile is the largest copper producer in the world and generally considered one of South America’s most prosperous nations. It leads the continent’s nations in areas such as income per capita, globalization, economic freedom and low perception of corruption.

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