The IMF has approved a $35 billion credit line for Mexico.
The International Monetary Fund’s executive board authorized a two-year, $35 billion flexible credit line for Mexico on Thursday, noting that the Latin American country’s economy is expanding broadly.
According to the statement, Mexican authorities want to treat the new agreement as precautionary and to maintain careful policy moving forward.
According to the IMF, this is Mexico’s eighth flexible credit line arrangement since 2009, and the country has lowered the sums of the lines given in recent years.
The IMF awarded Mexico a loan line worth approximately $88 billion in 2017, which was cut to $50 billion by 2021.
Mexico, on the other hand, remains sensitive to elevated external tail risks such as «renewed volatility in financial markets, increased risk premia, and capital outflows from emerging markets, as well as weaker US growth and a global slowdown,» according to Gopinath.
According to the IMF, authorities will reassess the external risk assessment and its implications for access under the agreement in November 2024.
