New York, NY (BBN)- The International Monetary Fund (IMF) has created a new short-term lending facility for countries with strong policies and good track records but which are facing temporary liquidity problems amid the current global financial turmoil.
The Short-Term Liquidity Facility (SLF), approved on Wednesday by the IMF's Executive Board, comes with no conditions attached once a loan has been approved and offers large upfront financing to help countries restore confidence and maintain stability.
"Exceptional times call for an exceptional response," stated IMF Managing Director Dominique Strauss-Kahn, as he announced the establishment of the new facility, according to a UN press statement.
Existing IMF loan facilities offer flexibility but are mainly intended for countries that require both financing and policy adjustment, and not for countries that despite strong initial macroeconomic positions and policies are facing short-term liquidity pressures.
BBN/SI/SS/AD-31October08-2:43 PM (BST)