Access to credit
FLAR currently offers three lines of credit or other financial support.
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.
For credit lines and other liquidity and contingency financial supports, which seek to address current or potential temporary liquidity problems, the Executive Presidency shall analyze the application and decide whether to grant of such financing. In contingency loans, there is a six-month availability period, which can be extended only once, and subject to the payment of an availability fee. Once the loan has been disbursed, it must be repaid in full within six months, renewable only once.
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.
Maximum loan amounts in relation to subscribed capital – US$ million
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.
Maximum loan disbursement capacity – US$ billion
Cumulative approved loans as of March 2018 – 2017 US$ million
Cumulative approved credits per modality as of March 2018 – 2017 US$ million
Approved loans vs. external events as of March 2018 - US$ million
FLAR strengthened its assistance capacity via two international market issues in 2003 and 2006.
International market issues