IMF approves new credit line for Chile worth $13.8B

By Ovunc Kutlu

ISTANBUL (AA) - The International Monetary Fund (IMF) said it approved a new two-year flexible credit line for Chile worth $13.8 billion.

Chile qualifies for the flexible credit line by its strong economic fundamentals and institutional policy frameworks, and sustained track record of strong macroeconomic policies, the IMF said Tuesday in a statement.

"The near-term outlook has improved, supported by a pickup in mining exports and a recovery in consumption," said IMF Deputy Managing Director Bo Li. "The government’s reform ambitions aim at adding dynamism to the economy, while making it more inclusive and greener."

"In particular, key efforts seek to expedite investment permits, capitalize on Chile’s opportunities from the global green transition, continue to raise revenues—mainly by enhancing tax compliance—and strengthen social security," he added.

The official, however, noted that Chile's economy remains exposed to elevated external risks, such as higher-for-longer interest rate environment in the US, economic slowdown in China and other key trading partners, and intensification of regional conflicts in the world.

This is Chile’s third flexible credit line arrangement after May 2020 and August 2022.