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Access to credit
Access to credit
Access to credit
FLAR currently offers three lines of credit or other financial support.1.
Balance of payments supports2
Liquidity3
Contingency4
The ceiling for all loans or other financial support a country has with FLAR may not exceed 2.5 times its paid-in capital (2.6 times for Bolivia and Ecuador).
FLAR may grant loans or other financial support to the central banks of its member countries to contribute to correct or prevent situations of structural imbalance of their balance of payments, or to solve temporary liquidity difficulties. In all cases, the application must be accompanied by the respective rationale.
For Balance of Payments Support loans, which seek to address structural imbalances, the application should be accompanied by an exhibition of policy measures and an economic and financial program with periodic targets. The Executive Presidency shall submit a report and its recommendation to the Board of Directors, which will be the decision-making body.
In the case of credit lines and other Liquidity and Contingency financial support, aimed at addressing current or potential transitory liquidity problems, the executive presidency will analyze the application and decide on the granting of this kind of financing.
Liquidity loans may be granted for a term of up to one, non-renewable year.
The contingency line has a six-month availability period, extendable for two periods of up to six months each. Once the loan has been disbursed, it must be paid in full within a six-month period, renewable only once. This credit line may be subject to an availability commission and requires a guarantee from the debtor.
Maximum loan disbursement capacity – US$ billion
Credit activity
Central banks have always honored their obligations with FLAR, even in situations of suspension of external public debt servicing by their governments.
Pursuant to current regulations, the following table shows the maximum amounts that FLAR has managed to allocate to loans or other financial assistance for all the central banks of its member countries, during 2014 – 2018.
Current Loans
Currently, FLAR currently has US$1.485 billion in current loans to central banks, entirely funded with FLAR capital. The Republic of Ecuador has an approved, undisbursed loan of up to US$ 638 million.
Cumulative approved loans as of May 2023 / Millions of USD from 2022
Figures reported of May 2023
Cumulative approved credits per modality as of May 2023 / Millions of USD from 2022
Figures reported of May 2023
Approved loans vs. external events as of May 2023 – US$ million / Millions of USD
Figures reported of May 2023
Issues
FLAR strengthened its assistance capacity via two international market issues in 2003 and 2006.