The IMF has announced a major overhaul of its lending practices to distressed countries, including launching a credit line without a cap or conditions.
'These reforms represent a significant change in the way the Fund can help its member countries - which is especially needed at this time of global crisis,' said IMF managing director Dominique Strauss-Kahn.
The main innovation is the creation of a new lending instrument, dubbed the Flexible Credit Line, which is designed for member countries the IMF views as having well-managed economies.
The Flexible Credit Line, without conditions required after the loan is granted or a limit on the amount of money that can be borrowed, will allow countries to obtain the credit line as a 'precautionary instrument' and will be available to be drawn on at any time.
