The Short-term Liquidity Line (SLL), introduced in 2020, was designed as a
revolving liquidity backstop for countries with very strong economic
fundamentals and institutional policy frameworks. It aims to address short-term,
moderate balance of payments needs arising from capital flow volatility, helping to
prevent emerging liquidity pressures from escalating into broader macroeconomic or
financial instability. However, uptake has been limited, with only one arrangement for
Chile in 2022, which was canceled shortly thereafter in favor of a Flexible Credit Line
(FCL).