Publication

In an effort to create a "global financial security network”, the International Monetary Fund has expanded its anti-crisis toolkit for preventing and counteracting financial crises. The IMF Executive Board decided to extend the terms and enhance the availability of loans under the existing Flexible Credit Line (FCL) and to establish a new Precautionary Credit Line for members with a sound monetary and fiscal policy which nonetheless do not meet FCL’s stricter requirements. While those decisions raise hopes for a long-awaited credit policy reform, the scope of the changes introduced so far remains limited.