Written in MONEY he 1/11/2024 · 16:02 hs
Last update: 1/11/2024 · 16:04 hs
The Mexican government maintains a line of credit open in the International Monetary Fundfor 35,000 million dollars, available in whole or in parts for when the country decides to use it, this after confirmation that Mexico continues to meet the qualification standards to retain it.
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The IMF reported in a statement that it approved the medium-term review of a flexible credit line of about $35 billion to Mexico, agreed in November 2023 for a period of two years.
In a statement, the IMF explained that on October 30, the organization’s board concluded the Article IV consultation with Mexico and the mid-term review under the Flexible Credit Line (LCF).
He recalled that the current agreement of the Flexible Credit Line of Mexico, which the IMF board approved for two years on November 15, 2023, is for an amount equivalent to 26,738 million special drawing rights, approximately 35,000 million dollars. .
They issue a warning about Mexico
The IMF warned that economic activity is moderating, private consumption and investment are slowing, and employment growth is slowing, the IMF said, as a consequence of the results of the Bank of Mexico’s restrictive monetary policy (Banxico).
It must be remembered that, since August, the central bank decided to begin reducing the key rate until it reached 10.5% at the end of September, amid a cooling of inflation and a weakening of the economy.
According to the FMIinflationary pressures are declining in the country and consumer prices are expected to reach the 3% target by 2025.
“Despite the expansionary fiscal stance, the economy’s growth is expected to slow to around 1.5% this year,” the Fund warned.
Large-scale fiscal consolidation, supported by well-identified measures, will be necessary to preserve fiscal sustainability, the IMF noted, and recommended gradually eliminating monetary restriction.
In addition, he pointed out that Mexico maintains important reserves, a sustainable external position and effective financial supervision, but warned that Latin America’s second largest economy remains exposed to significant external risks amid persistent uncertainty.
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