Chile gets reduced $11.8bn IMF credit line

Chile has received IMF board approval for a two-year flexible credit line of $11.8 billion, a smaller amount than under its previous arrangement.

The International Monetary Fund said the reduced access reflected stronger buffers and Chile's lower need for the funds. Chile first received a similar credit line in May 2020 for about $24 billion, and the arrangement has been renewed every two years in decreasing amounts.

The IMF said Chilean authorities requested the latest line in case of an emergency and would treat it as precautionary.

IMF Deputy Managing Director Kenji Okamura said Chile's growth had moderated, with a temporary slowdown in mining activity partly offset by higher copper prices. He said the economy remained exposed to external risks, including hostilities in the Middle East, trade tensions, slower growth in key trading partners and possible market corrections linked to a reassessment of AI-led productivity gains.

Flexible credit lines are designed for crisis prevention and differ from many other IMF programs, which generally require structural reform conditions before funds are disbursed.