IMF Precautionary and Liquidity Line (PLL)
IMF Precautionary and Liquidity Line (PLL)
The global financial crisis highlighted the need for effective global financial safety nets to help countries cope with adverse shocks. A key objective of recent lending reforms was to complement the traditional crisis resolution role of the IMF with more effective tools for crisis prevention. The Precautionary and Liquidity Line (PLL) is designed to flexibly meet the liquidity needs of member countries with sound economic fundamentals but with some limited remaining vulnerabilities which preclude them from using the Flexible Credit Line (FCL).
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Eligibility
Eligibility to these facilities requires countries to have strong macroeconomic fundamentals. However, when disasters are occurring so often and increasing in their intensity, many disaster-prone countries are unlikely to have strong macroeconomic fundamentals.