WASHINGTON (Reuters) – Current demand for the IMF’s new short-term liquidity line could reach $50 billion from several countries, IMF officials said on Wednesday, saying the facility could help countries address liquidity needs before they morphed into bigger problems.

The International Monetary Fund is in discussions with several countries about using the facility, which was approved by the IMF’s executive board last week, the officials told reporters, but declined to name specific candidates.

Use of the revolving liquidity line will be limited to countries that have very strong fundamentals and policy frameworks, are not eligible for concessional financing, and are not part of the Euro zone, the officials said, adding that initially some 10 to 20 countries would be eligible to use it.

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