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IMF revamps lending, creates new credit line

Published 03/24/2009, 02:00 PM
Updated 03/24/2009, 02:08 PM

WASHINGTON, March 24 (Reuters) - The International Monetary Fund on Tuesday revamped the way it lends to member countries in the wake of a worsening global economic crisis and created a new flexible credit line for well-run emerging market economies.

The new Flexible Credit Line would replace a Short-Term Liquidity Facility approved in October for countries with good track records and increase the pool of money available to them, with no strings attached.

"These reforms represent a significant change in the way the Fund can help its member countries, which is especially needed at this time of global crisis," IMF Managing Director Dominique Strauss-Kahn said.

"More flexibility in our lending along with streamlined conditionality will help us respond effectively to the various needs of members. This, in turn, will help them to weather the crisis and return to sustainable growth," he added. (Reporting by Lesley Wroughton; Editing by Andrea Ricci)

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