IMF renews line of credit to Mexico
The International Monetary Fund (IMF) renewed a credit line two years for 50 billion dollars for the Government of Mexico, reported today the Bank of Mexico (Banxico) and the Ministry of Finance.
The renewal of the Flexible Credit Line (LCF) “constitutes an acknowledgment to the solidity of the institutional framework for macroeconomic policies, “said the Foreign Exchange Commission, which is made up of Banxico and the Treasury, in a statement.
“In its evaluation, the IMF highlighted that the country has successfully maintained macroeconomic, fiscal and financial stability, despite the complex economic context, as a result of robust policies and frameworks in these matters,” he explained.
What is the Flexible Credit Line?
Banxico and Hacienda explained that the LCF is a precautionary instrument to strengthen the international asset reserve and complement the tools of the Mexican authorities to face adverse external conditions and preserve stability.
But after considering a balance of external risks and the commitment to maintain economic stability, the Mexican authorities began in 2018 a gradual and orderly exit strategy from the LCF.
Therefore, this year’s credit line is 50 billion dollars, while last year it was $ 61 billion.
“The Foreign Exchange Commission will continue with the strategy of reviewing the level of access after one year and, if the risk scenario facing Mexico at that time justifies it, authorize the request for an additional reduction,” the statement from The authorities.