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LatinNews Daily - 13 May 2020

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In brief: Chile approaches IMF for bulky credit line

* Chile has submitted a request to the International Monetary Fund (IMF) for a two-year flexible credit line (FCL) amounting to some US$23.8bn to help the country cope with the coronavirus (Covid-19) pandemic. In a statement, the IMF indicated that managing director Kristalina Georgieva “intends to recommend approval” of the loan based on Chile’s “very strong economic fundamentals, institutional policy frameworks and track record”. The request will be discussed by the IMF executive board in the next few weeks. The FCL is a fund set up to cater for crisis prevention and mitigation in countries with robust policy frameworks and economic report cards. The IMF has predicted that Chile, beset by social unrest since last year and now the pandemic, will see a contraction in real GDP of 4.5% in 2020.