Development Sustainability Contingent Credit Line (DSL)
The Development Sustainability Contingent Credit Line (DSL) is structured as a contingent credit line. Individual loan operations would be approved by the Board of Executive Directors prior to the onset of the economic shock, at which time the borrowing member country would have a need to draw down on the approved resources. The DSL will be available to support countries facing exogenous systemic shocks or exogenous country-specific economic shocks. A country can subscribe one loan operation to cover exogenous shocks be those systemic or country specific.
A systemic crisis is a widespread financial shock that guarantees that financial distress is not the result of domestic policies and suggests that its origin resides in a temporary failure in finance supply, thereby requiring emergency interventions to provide liquidity to otherwise solvent economies.