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IMF Renews Mexico’s Flexible Credit Line for Two Years at About $24 Billion

Mexico requested a smaller, fully precautionary backstop to reflect stronger buffers.

Overview

  • Access was cut at Mexico’s request from 300% to 200% of its IMF quota, equal to 17.8254 billion SDRs, or roughly $24 billion, and the prior roughly $35 billion line was canceled.
  • The IMF Executive Board approved the renewal on November 13 and affirmed that Mexico meets all FCL qualification criteria, citing sound public finances, a sustainable debt path, and effective monetary and regulatory frameworks.
  • Officials emphasized the facility is precautionary and not intended to be used now, serving instead to reinforce international reserves as a contingency backstop.
  • The move extends a multi‑year strategy to reduce reliance on the FCL from a peak of about $88 billion in 2017 as resilience and financial buffers have increased.
  • IMF deputy managing director Nigel Clarke noted economic activity remains weak and external risks persist, while welcoming recent policy recalibration, including a 25‑basis‑point rate cut as inflation pressures ease.