IMF Executive Board Completes Review of Mexico’s Performance Under Flexible Line of Credit Agreement


IMF Executive Board Completes Review of Mexico’s Performance Under Flexible Line of Credit Agreement







November 17, 2022











  • The IMF has completed its standard mid-term review of Mexico’s qualification under the Flexible Credit Line (FCL), initially approved on November 19, 2021, with an access level of approximately $50 billion.
  • Mexico continues to qualify for the FCL due to its very strong fundamentals and institutional policy frameworks and track record of economic performance and policy implementation.
  • Given the rise in external risks since the start of the agreement, the Mexican authorities have chosen not to request a reduction in access during this review, but remain committed to pursuing a gradual exit trajectory, subject to the evolution of external risks. Authorities intend to continue to treat the arrangement as a precautionary device.





Washington D.C.:
On November 16, 2022, the Executive Board of the International Monetary Fund (IMF) completed its review of Mexico’s qualification for the Flexible Credit Line (FCL) arrangement and confirmed Mexico’s continued qualification for access FCL resources. The current two-year FCL arrangement for Mexico in an amount equivalent to SDR 35.6508 billion (400 percent of quota, or about $50 billion)1 was approved by the IMF Executive Board on November 19, 2021 (see

Press release no. 21/340

). The Mexican authorities have indicated their intention to treat the arrangement as a preventive measure.

Following the Board discussion on Mexico, Ms. Antoinette Sayeh, Deputy CEO and Acting Chair, made the following statement:

“Mexico’s recovery from the pandemic is underway, but a more turbulent external environment, soaring global inflation and tighter global financial conditions, and slowing U.S. economic activity present new challenges and risks. for recovery. The economy has nevertheless shown resilience thanks to its very strong policies and institutional frameworks, including a flexible exchange rate regime, a credible inflation targeting framework, a fiscal responsibility law and a financial sector. well regulated.

“The Mexican economy remains exposed to external risks. The global surge in inflation triggered a series of monetary tightening, growing global risk aversion and threatened growth. Elevated risks from a slowing advanced economy, a disorderly tightening in global financial markets, Russia’s invasion of Ukraine, a slowdown in China and swings in commodity prices continue to cloud the outlook . The Flexible Credit Line (FCL) will continue to play an important role in supporting the authorities’ macroeconomic strategy by providing insurance against tail risks and boosting market confidence.

“The authorities have a proven track record of sound policy management and are firmly committed to maintaining prudent policies going forward. Due to increased external risks, they decided to maintain their current access levels, but nevertheless reaffirmed their commitment to pursue a gradual exit trajectory, conditional on the evolution of external risks. Authorities intend to continue to treat the arrangement as a precautionary measure.


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Maria Candia Romano

Call: +1 202 623-7100E-mail: [email protected]

@IMF Spokesperson




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