The International Monetary Fund (IMF) has released $88,634 million in favour of 81 member countries since March. The economies of Latin America and the Caribbean have received 57.4% of these resources.
According to Mexico’s newspaper El Economista, by displeasing credits granted on the basis of the type of financial instrument, it is noted that the Flexible Credit Line, which is the flagship instrument that de facto supports macroprudential management of the economy, has only been awarded in Latin America and the Caribbean.
The IMF Board has granted the renewal of the facility to Colombia, with an account open for $10.8 billion; approved Chile’s access, as a sum secured by $23,930 million; as well as Peru, which has also just been approved for access to $11 billion. The IMF count does not identify Mexico as the FCL was approved since last November, long before the pandemic, and is for the highest amount of $60 billion.
IMF analysts say the agency has adapted its loans to support members in the face of unprecedented uncertainty and the severe economic impact unleashed by COVID-19. In addition, they noted that they have provided financial assistance to 81 countries and that there are 30 more who have expressed an interest in IMF-backed programs to rebuild their financial safety nets and address the immediate consequences of the pandemic.
“To help member countries cope with this one-century pandemic, IMF lending programmes are adapting through innovation and increased flexibility as countries move from the initial phase of containment to stabilization and eventually to recovery.”
There are 20 Countries in Latin America and the Caribbean that have the IMF’s emergency financial support to address the COVID-19 pandemic. This is Bahamas, Barbados, Bolivia, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Haiti, Honduras, Jamaica, Panama, Paraguay, Peru, Saint Lucia, Saint Vincent and the Grenadines.
By the structure of this financial mechanism, resources should be directed to address urgent balance-of-payments needs, which aims to free up pressure on governments to focus their own efforts and resources on the payment of essential health expenditures related to the health emergency and the strengthening of the social safety net.