The International Monetary Fund (IMF) announced on Friday that its executive board had approved a new two-year, $24 billion flexible credit line for Mexico, designed to serve as a safeguard against external risks.
The IMF highlighted that Mexico has steadily reduced its dependence on the precautionary fund in recent years.
The Mexican authorities have opted to treat the new credit line as precautionary, cancelling their previous arrangement of approximately $35 billion, according to the IMF's statement.
This marks Mexico’s eleventh such arrangement since 2009, with the size of the credit line having decreased from a peak of around $88 billion in 2017.
The IMF noted that the smaller credit line reflects the increased economic buffers and resilience of Mexico’s economy.
Mexican officials requested the new credit line for another two years at a reduced access level, citing the country's strong finances, which make it less susceptible to sudden changes in capital flows, according to a joint statement from the Bank of Mexico and the Mexican finance ministry.
However, IMF Deputy Managing Director Nigel Clarke acknowledged that the country’s economy faces challenges.
"Economic activity in Mexico remains subdued, constrained by necessary fiscal consolidation and still restrictive monetary policy, along with the dampening effects of trade tensions," he said.
He added that while Mexico has demonstrated resilience, "trade-related risks have increased since the last FCL review."
The new credit line will continue to play a significant role in supporting Mexico's macroeconomic strategy, offering "insurance against tail risks while reinforcing market confidence," the IMF concluded.
Assistant to the President of the Republic of Azerbaijan, Hikmat Hajiyev, held a series of bilateral meetings on the sidelines of the 23rd Doha Forum ...
The 23rd edition of the Doha Forum commenced on Saturday in the Qatari capital, focusing on the theme “Justice in Action: Beyond Promises to Progres...
A railway hub near Kyiv was struck during a large-scale Russian drone and missile assault, damaging the depot and railway carriages, the Ukrainian sta...
Azerbaijan and Uzbekistan have strengthened their energy partnership with the launch of a joint exploration project in the Ustyurt region, highlightin...
Azerbaijan and Uzbekistan have strengthened their energy partnership with the launch of a joint exploration project in the Ustyurt region, highlighting growing strategic cooperation between the two countries.
The 23rd edition of the Doha Forum commenced on Saturday in the Qatari capital, focusing on the theme “Justice in Action: Beyond Promises to Progress.”
Assistant to the President of the Republic of Azerbaijan, Hikmat Hajiyev, held a series of bilateral meetings on the sidelines of the 23rd Doha Forum in Qatar, aimed at deepening cooperation between the two countries.
The 2026 FIFA World Cup draw at the Kennedy Center in Washington, D.C., has finalized the group stage for the tournament co-hosted by the U.S., Canada, and Mexico, setting the schedule and matchups for next summer’s expanded 48-team event.
Israel was cleared on Thursday to participate in the 2026 Eurovision Song Contest, a decision made by the organisers, the European Broadcasting Union (EBU), which sparked a major controversy.
Pakistan and Afghanistan exchanged heavy fire along their shared border late on Friday, a reminder of how sensitive the frontier remains despite ongoing diplomatic efforts.
Iran’s Foreign Ministry has strongly condemned the Gulf Cooperation Council (GCC) for its support of the claims by United Arab Emirates on three Iranian islands.
Chinese leader Xi Jinping accompanied French President Emmanuel Macron to Chengdu on Friday, a rare gesture seemingly reserved for the head of Europe's second-largest economy that highlights Beijing's focus on Paris in its ties with the European Union.
The 23rd edition of the Doha Forum commenced on Saturday in the Qatari capital, focusing on the theme “Justice in Action: Beyond Promises to Progress.”
A railway hub near Kyiv was struck during a large-scale Russian drone and missile assault, damaging the depot and railway carriages, the Ukrainian state railway company Ukrzaliznytsia reported on Saturday.
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 6th of December, covering the latest developments you need to know.
Australia has moved to directly pressure the Taliban leadership, imposing financial sanctions and travel bans on four senior officials it says are responsible for the steady erosion of women’s rights in Afghanistan.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment