Aug 29 Reuters The International Monetary Fund39;s IMF executive board approved a flexible credit line of around 18.5 billion for Chile to give the world39;s leading copper miner greater flexibility to confront risks from commodities price shocks to financial tightening.

Chile is one of Latin America39;s most stable democracies but has nonetheless been hit by a depreciating currency and an unexpectedly weak economy. 

Chilean authorities intend to treat the credit line as precautionary and plan to exit the arrangement when conditions allow, IMF Managing Director Kristalina Georgieva said in a statement.

The IMF39;s Chile mission chief, Ana Corbacho, told journalists in a call that there were no limits nor time restraints to accessing the full amount of the facility, which would be available in a scenario of economic shock.

Again, to emphasize…authorities do not intend to draw on the line, Corbacho said.

It will also increase the international liquidity availability of Chile39;s central bank by more than 40, the bank said in a statement following the announcement. The finance ministry did not immediately respond to a request for comment.

The credit line is not subject to any additional conditions from the IMF, according to the central bank.

Chile also told the IMF it would cancel an existing shortterm liquidity line of around 3.3 billion, the fund said.

Chile qualified for the flexible credit line due to its strong economic fundamentals and institutional policy…