Policy Papers

IMF COVID-19 Response—A New Short-Term Liquidity Line to Enhance The Adequacy Of The Global Financial Safety Net

Publication Date:

April 22, 2020

Electronic Access:

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Summary:

The COVID-19 pandemic has created severe disruption in the global financial system, with many emerging market and developing countries (EMDCs) facing liquidity shortages. In the context of intensified demand for liquidity and heightened global uncertainty, staff has revisited the 2017 proposal for a new facility to provide liquidity support to the Fund’s membership. This paper proposes the establishment of a new Short-term Liquidity Line (SLL) as a special facility in the General Resources Account (GRA), based on the key features of the 2017 blueprint.

Series:

Policy Paper No. 2020/025

Subject:

Asset and liability management Balance of payments Balance of payments need Communications in revenue administration Credit Financial Sector Assessment Program Financial sector policy and analysis Liquidity Money Revenue administration