Don't miss

Replay


LATEST SHOWS

EYE ON AFRICA

Tunisia's Parliament votes on new Government

Read more

MEDIAWATCH

French court rules #burkini ban "clearly illegal"

Read more

THE WORLD THIS WEEK

Biden in Turkey, Colombia Peace Deal, Ethiopia Olympic Protest (part 2)

Read more

THE WORLD THIS WEEK

Earthquake in Italy, French Burkini Ruling (part 1)

Read more

FRANCE IN FOCUS

The hidden secrets of Les Invalides

Read more

FOCUS

Pro-Opposition stronghold Port-Gentil feverishly awaits presidential elections

Read more

ENCORE!

Alexis Michalik: treading the boards in the footsteps of 'Edmond'

Read more

REPORTERS

Getting away with murder in DR Congo

Read more

IN THE PAPERS

'Why does Italy refuse to see the seismic risk?'

Read more

Business

IMF approves $47 billion credit line for Mexico

Latest update : 2009-04-18

The International Monetary Fund (IMF) approved a $47 billion credit line for Mexico under a new program to help developing countries cope with the financial crisis in what senior IMF official John Lipsky (photo) called a “historic occasion".

AFP - The International Monetary Fund approved a 47-billion-dollar credit line for Mexico Friday under a new scheme designed to throw a cash lifeline to countries hit by the global economic crisis.
  
"The Mexican authorities have stated they intend to treat the arrangement as precautionary and do not intend to draw on the line," the IMF said.
  
It was the first line of credit approved under a new IMF program aimed at giving countries the flexibility to draw on credit at any time to prevent financial crisis.
  
"Today is a historic occasion. The IMF Executive Board has approved the first Flexible Credit Line (FCL) arrangement and, at the same time, the largest financial arrangement in the Fund's history," said John Lipsky, acting chairman of the IMF board.
  
He said the credit line was justified by Mexico's strong track record of solid growth with low inflation, steady reductions in public spending, a contained deficit, strong corporate earnings and a well capitalized banking system.
  
Mexico has not had to tap the IMF for credit in a decade.
  
 "However, the current difficult global economic and financial environment poses challenges even for countries with very strong fundamentals," Lipsky said.
  
"As the global situation has deteriorated, Mexican asset prices have fallen sharply in line with the global market sell off, and GDP growth has slowed sharply.
  
"While Mexico's underlying fundamentals remain very strong, and the balance of payments position is manageable, the open capital account and close global financial linkages -- on top of close trade links with the United States -- could expose the country to potential downside risks," he said.
  
The next potential customer is Poland, which has requested a 20-billion-dollar line of credit.
  
Other possible candidates for an IMF credit line could be Brazil, Chile, Colombia, South Korea, the Czech Republic and Singapore.

Date created : 2009-04-18

COMMENT(S)