He government of Mexico renewed its Flexible Credit Line (LCF) with the International Monetary Fund (IMF) for a period of two years and a valid amount of 35 billion dollars.
The renewal of the LCF took place three days after the expiration of the term authorized by the IMF two years ago, as well as being less than the amount authorized by 47 billion dollars as part of a request made by the country to gradually reduce funding.
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“The mexican economy is located in the middle of a wide expansionwith a robust private consumption and investment. The macroeconomic policies and the institutional policy frameworks of Mexico remain very solid, with a flexible exchange rate regime,” the IMF said in a statement.
According to the agency, an evaluation will be carried out in November 2024 to determine the prospects for economic risks of the country and thus determine if the criteria to access said financing are met.
With this credit line the country can strengthen its reserve of international assetsin case there is any external shock, in order to preserve the economic and financial stability.
Mexico has the LCF of the IMF since 2009, but only in 2017 did it announce its gradual withdrawal from said mechanism, which is conditional on the external economic risks that may arise.
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“The authorities reaffirm their commitment to macroeconomic policies prudent that contribute to the financial stability and to sustainable and inclusive economic growth“said the Ministry of Finance in a separate statement.