By Lesley Wroughton and Javier Mozzo Pena
WASHINGTON/BOGOTA, April 20 (Reuters) - Colombia requested a $10.4 billion International Monetary Fund credit line on Monday to help protect it from an economic crisis, as it reported its industrial production plummeted 12.8 percent in February.
Gross domestic product in the Andean country contracted in the fourth quarter and economists say Colombia is probably in recession as investment stagnates, unemployment spikes and commodity export revenues dry up.
Colombia is the third emerging market economy to request an IMF credit line to help it through the world financial tumult.
"Colombian authorities have responded appropriately to the global financial crisis," IMF chief Dominique Strauss-Kahn said in a statement. "I intend to move ahead rapidly in seeking approval by the fund's executive board of Colombia's request for an (flexible credit line) arrangement."
Finance Minister Oscar Zuluaga told reporters in Bogota, "The main purpose (for the credit line) is to give the country an insurance policy against what might become a very difficult situation.
"We are making this request to further shield the country from the escalation of the global turmoil," Zuluaga said.
The IMF on Friday gave final approval for a $47 billion line of credit for Mexico, the first country to qualify for the new IMF lending instrument for strong-performing emerging economies. Poland has also requested an IMF credit line.
The government, meanwhile, reported February's decline in industrial output as measured against the same month last year. Industrial production fell 11.6 percent in the first two months of 2009 versus the same 2008 period.
Colombian retail sales fell 4.1 percent in February versus February 2008, the government said on Monday, showing slower consumer demand.
There are no string attached to the IMF credit lines and governments can draw down on the funding when they like. (Reporting by Lesley Wroughton and Javier Mozzo, writing by Hugh Bronstein; Editing by Leslie Adler)