IMF approves US$72 billion credit line to Mexico

JAKARTA: International Monetary Fund (IMF) approved a two-year Flexible Credit Line (FCL) for US$72 billion as a successor of two FCLs distributed last year, today, to Mexico. It would be the biggest flexible line of credit ever awarded by the IMF.Mexicos first FCL was approved on April 17, 2009 and was renewed in March 25, 2010.As cited on IMF official statement, First Deputy Managing Director and Acting Chairman of IMF Executive Board John Lipsky stated that Mexico has very strong economic fundamentals and a robust policy framework. Major progress has been made over the years toward strengthening public and private sector balance sheets and reinforcing the resilience of the financial sector.However, as he added, important risks to the global economic outlook remain, particularly from pressures on global investor confidence and capital flows, which pose continuing challenges for emerging markets like Mexico. At the authorities request, the Executive Board today approved a new arrangement under the IMFs FCL as a successor to the previous arrangement approved in March 2010.FCL facility is given to countries with sturdy fundamentals, policies and good records of policy implementation and practical for crisis prevention purposes. The repayment period is between three and five years. (T05/NOM)