The International Monetary Fund (IMF) has announced a new credit line that is expected to contribute to preventing a future financial crisis.

The IMF’s new credit line is only for countries that are deemed economically sound, but it is less stringent than the line introduced by the IMF last year.

Accordingly, the duration of the credit line has been extended from one to two years and the amount of credit available has been increased.

With the IMF’s easing of loan requirements, nations that had experienced difficulties due to a rapid outflow of capital when the global financial crisis erupted despite having sound economic fundamentals will be eligible for credit assistance to avoid a future crisis situation.

South Korea, which will chair the G20 summit in Seoul in November, was behind the revision that the IMF approved and played a leading role in the passage of the proposal.