The IMF board on Friday granted its first short-term credit line to Chile, a new tool meant to serve as a backstop anytime a country faces a sudden funding need. The one-year Short-term Liquidity Line, created in 2020, is only available to qualified countries with a strong policy track record, who can draw on the funds at any time, the IMF said. Chile accepted the global lender’s offer to sign up for the new facility and will be able to tap about $3.5 billion in the renewable, revolving credit line. “I am delighted that Chile has accepted the Fund’s offer of an SLL, becoming the first user of this special and innovative instrument,” IMF Deputy Managing Director Bo Li said in a statement. “Chile has very strong fundamentals and policy frameworks, and a sustained track record of implementing policies that have supported the country’s resilience in the face of large shocks.” Disbursements under the credit line are not phased nor tied to compliance with policy targets as in regular IMF-supported programs. Chile also exited the $24-billion, two-year Flexible Credit Line arrangement that the IMF approved in May 2020. The two programs have the same criteria for qualification and are designed to help prevent a crisis by allowing funds to be readily available. However, only five countries have used the FCL.