IMF approves new $9.8 bln flexible credit line for Colombia

The International Monetary Fund on Friday approved a $9.8 billion Flexible Credit Line for Colombia, which the South American country said will be treated as "precautionary," the IMF said in a statement.

"Colombia qualifies for the (Flexible Credit Line) by virtue of its very strong economic fundamentals and institutional policy frameworks and track record of implementing very strong policies and commitment to maintaining such policies," the Fund said.

Colombia last drew about $5.4 billion on December 2020 from an FCL agreement approved in earlier that year to address the COVID-19 pandemic, and did not withdraw from FCLs approved in 2016 and 2018, IMF data show.

The Fund said Colombia remains vulnerable to external risks including inflationary pressures and a spike in risk premia, and this new credit line will reinforce market confidence in the oil exporter.