Mexico maintains criteria for IMF flexible credit line, authorities say

Mexican authorities said Thursday that Mexico continues to meet the criteria needed to access a flexible credit line with the International Monetary Fund (IMF) for up to US$47 billion.

Mexico’s Foreign Exchange Commission said the international lender’s Executive Board completed on Nov. 16 the mid-term review of the Flexible Credit Line (FCL) granted to Mexico in November 2021 for a two-year term.

“In its assessment, the IMF highlighted that in recent years Mexico has implemented sound macroeconomic policies and maintained a strong institutional framework that has allowed it to face adverse shocks originating in the global economy resiliently,” the commission said.

According to the authorities, the world economy has weakened due to the COVID-19 pandemic, the economic effects of the geopolitical conflict in Eastern Europe, and the “tightening” of global financial conditions.

The Commission, made up of the Central Bank of Mexico (Banxico) and the government’s Ministry (Ministry) of Finance, said that in the future, it would continue to evaluate the implementation of the gradual and orderly exit strategy from the FCL announced in 2017, following the risk outlook.

Mexico has not used the mechanism since it was first authorized in 2009.

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