The International Monetary Fund (IMF) has approved the establishment of a Short-term Liquidity Line (SLL) to further strengthen the global financial safety net as part of the Fund’s COVID-19 response.

Ms. Kristalina Georgieva, Managing Director of the IMF said this in a statement.

Georgieva said the facility was a revolving and renewable backstop for member countries with very strong policies and fundamentals in need of short-term moderate balance of payments support.

She said in these cases, the Short-term Liquidity Line would provide revolving access of up to 145 percent of quota.

“The Short-term Liquidity Line will strengthen further a country’s liquidity buffers and thus help in managing liquidity pressures.

“Complementing other instruments during the current crisis, the facility will fill a critical gap in the Fund’s toolkit and help to facilitate a more efficient allocation of resources,” she added.

Amaka E. Nliam