Precautionary and Liquidity Line - Operational Guidance Note

International Monetary Fund

No 2025/014, IMF Policy Papers from International Monetary Fund

Abstract: This note provides operational guidance on the use of the Precautionary and Liquidity Line (PLL). After an overview of the instrument explaining its specific nature, the operational issues are grouped into six areas: an outline of the process and specific steps that need to be followed if a member expresses interest in an arrangement; guidance on determining qualification of a member; guidance on access, phasing, ex-post conditionality, review process; guidance on purchases; guidance on communication of expiration or cancellation; and guidance on interaction with other instruments. The note is an aid to the implementation of the policy and its underlying principles. If there is any instance in which a provision of the guidance note or its implementation conflicts with Board policy, Board policy prevails. It will be revised as needed, for example, following relevant policy reviews.

Keywords: Precautionary and Liquidity Line; PLL; Precautionary Toolkit; IMF; Guidance Notes; PLL arrangement; ETF volatility index; Chicago Board option; PLL request; transparency policy; Balance of payments need; Macro-fiscal framework; Anti-money laundering and combating the financing of terrorism (AML/CFT); Lines of credit; Global (search for similar items in EconPapers)
Pages: 53
Date: 2025-04-30
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