IMF approves new $10.8 billion, two year credit line for Colombia

FILE PHOTO: The logo of the International Monetary Fund (IMF) is seen during a news conference in Santiago, Chile, July 23, 2019. REUTERS/Rodrigo Garrido

WASHINGTON (Reuters) - The International Monetary Fund said on Friday its executive board approved a new two-year flexible credit line of about $10.8 billion for Colombia, replacing an expiring facility.

The renewal of the precautionary credit line comes as the coronavirus pandemic is expected to cause Colombia’s economy to contract for the first time in more than two decades, the IMF said.

Colombia received $250 million in emergency financing from the World Bank last month to help its health response to the pandemic.

Reporting by David Lawder; Editing by Sandra Maler