18:51 GMT21 January 2021
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    International Monetary Fund announced that A two-year $88 billion flexible credit line has been approved for Mexico and the previous $67 billion agreement with the country has been cancelled.

    WASHINGTON (Sputnik) A two-year $88 billion flexible credit line has been approved for Mexico and the previous $67 billion agreement with the country has been cancelled, the International Monetary Fund (IMF) announced in a statement on Friday.

    "The Mexican economy has shown impressive resilience to a slowdown in world growth in recent years," IMF First Deputy Manager and Acting Chair David Lipton said. "Economic activity is growing at a steady pace, inflation is low and stable and the financial system is sound."

    The new arrangement gives Mexico a higher level of credit access intended to support Mexico’s macroeconomic strategy by providing insurance against external risks. The credit line is intended to be for the purpose of preventing crisis.

    Lipton explained that the Mexican economy remains exposed to external risks because of its close ties to the global economy.

    Earlier in May, the international credit rating agency Moody's Investors Service predicted Mexico’s growth would slow down in 2016 due to an expected slump in commodity prices and weaker emerging market performance.

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    Tags:
    credit, International Monetary Fund, Mexico
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