Statement by IMF First Deputy Managing Director John Lipsky on MexicoPress Release No. 10/79
March 10, 2010
Mr. John Lipsky, First Deputy Managing Director of the International Monetary Fund (IMF), made the following statement today in Washington:
“I welcome the authorities’ indication that Mexico is interested in renewing its one-year precautionary arrangement under the IMF’s Flexible Credit Line (FCL) for 1,000 percent of quota (SDR 32 billion or about US$48 billion).
“Mexico has a sustained record of sound economic policies, and has very strong economic fundamentals, and institutional and policy frameworks. While Mexico has been hit hard by the global financial crisis, the Mexican authorities have responded strongly and effectively, and there are clear signs that a recovery is underway.
“Given the uncertainties that remain in the global environment, and noting the success of the current FCL arrangement, I share the authorities’ view that a successor FCL arrangement can play an important role in continuing to support Mexico’s policy strategy and in maintaining external confidence. The IMF’s Management therefore intends to move ahead rapidly in seeking approval by the Fund's Executive Board of Mexico’s request for an FCL arrangement.”
The FCL is an instrument established on March 24, 2009 that is available to Fund member countries deemed to possess very strong fundamentals, policies, and track records of policy implementation. Access to FCL resources is based on the requesting country having met these criteria, rather than on fulfilling ex-post performance criteria (see Press Release No. 09/85 and Public Information Notice No. 09/40 for more information on the FCL and the qualifying criteria).
Mexico’s Flexible Credit Line was approved on April 17, 2009. For more information, please see Press Release No. 09/130