Mexico and the IMF
IMF Board Releases US$2 Billion for Mexico:
Sets Schedule for Remaining US$8.7 Billion
Michel Camdessus, Managing Director of the International Monetary
Fund (IMF), said that the IMF's Executive Board today reviewed the
progress Mexico has made in implementing its economic stabilization program.
As a result of this review, the Executive Board set the terms for
disbursing to Mexico the remaining SDR 6.8 billion (about US$10.7 billion)
1 under the stand-by credit
for SDR 12,070.2 billion (about US$18.9 billion)
approved on February 1, 1995.
Under the decision, SDR 1.29 billion (about US$2 billion) will be
available immediately. The remainder will be made available in five
equal installments of SDR 1.1 billion (about US $1.73 billion each)
--beginning August 1995, through August 1996, subject to continuing
Camdessus said that, since Mexico adopted the economic program to deal
with its financial crisis in early 1995, its trade and current account
balances have dramatically improved, the peso has recovered from its
lows of early-March, foreign reserves have risen sharply, interest
rates have fallen, the stock market has recovered, and the budget
surplus has exceeded forecasts.
"Provided Mexico continues to pursue prudent financial policies and
structural reforms, there should be a return to economic growth in
1996 and beyond and a reduction in inflation to international levels,
contributing no doubt to a further strengthening in market
confidence," Camdessus said.
1. At US$1.56876 per SDR.
IMF EXTERNAL RELATIONS DEPARTMENT