Mexico has renewed its flexible credit line with the International Monetary Fund (IMF), but, as in previous years, it has requested a smaller amount. The Ministry of Finance and Public Credit (SHCP) announced this on Thursday.
The Exchange Commission requested a new two-year credit line from the IMF, with a lower access level equivalent to 17.8254 billion Special Drawing Rights (SDRs), or approximately $24 billion.
The official statement explains that the decision was made considering the balance of risks in the global economic environment, as well as Mexico's strong macroeconomic and financial fundamentals, which reduce its exposure to potential capital flow reversals.
This gradual reduction strategy was adopted under the López Obrador administration, which progressively lowered the amount requested from the IMF, reducing the credit line from $88 billion to $50 billion in 2021. The new amount is $24 billion, down from $35 billion last year.
This credit line, combined with international reserves, serves as an emergency insurance policy against external financial shocks. It was first requested in 2009 for $47 billion and has been renewed six times.
Despite recent events such as the rains and floods in October that severely affected five states, President Sheinbaum has assured that she does not consider using these resources at this time.
