Washington [US], September 26 (ANI/Sputnik): The International Monetary Fund (IMF) approved Colombia's request to raise its credit line by $6.2 billion, the IMF said in a statement on Friday.

"The Executive Board of the International Monetary Fund (IMF) approved today a request by the Colombian authorities to increase access under its current Flexible Credit Line (FCL) arrangement to SDR 12.267 billion (about USD 17.2 billion), equivalent to 600 percent of quota," the statement read. "This represents an SDR 4.4174 billion increase (about USD 6.2 billion) in relation to the two-year arrangement that was approved on May 1, 2020."The augmentation was approved in light of Colombia's continued qualification with very strong institutional policy frameworks, track record of economic performance and policy implementation, it added.

The IMF also took into account larger than previously expected impacts from the COVID-19 pandemic.

Colombia has implemented very strong policy frameworks, which allows it to get a coordinated and timely response to the novel coronavirus pandemic, Fund's Deputy Managing Director and Acting Chair Antoinette Sayeh said.

"The authorities' early response and continuing actions - including the temporary suspension of the fiscal rule to raise health spending, as well as to assist vulnerable households and businesses - are welcome and supporting the economy through the recession," she added.

In the meantime, unexpected deterioration in the macroeconomic and fiscal situation due to the pandemic has resulted in a larger balance of payments needs, Sayeh said. New IMF support will help Colombia with external crisis, including migrants flow from Venezuela, she added. (ANI/Sputnik)