IMF says Colombia requests new credit line

WASHINGTON Mon May 6, 2013 5:07pm EDT

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WASHINGTON May 6 (Reuters) - The International Monetary Fund (IMF) said on Monday Colombia has requested a new flexible credit line to replace its previous $6 billion two-year program with the Fund, which should expire this month.

"I share the authorities' view that a successor (flexible credit line) arrangement would provide Colombia with useful protection against external tail risks," Nemat Shafik, an IMF deputy managing director, said in a statement.

"I therefore intend to move ahead rapidly in seeking approval by the Fund's Executive Board of Colombia's request."

Colombia has never drawn on the credit line, but it provides a safety net in case the global economy or financial conditions worsen. Colombia has previously asked the IMF for help in controlling the flood of "hot money" into the country, which has pushed up the value of the peso.

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