Today, eight days after the IMF approved its new, condition-free loan facility, the Flexible Credit Line, Mexico announced that it will ask the IMF for a US$47 million line of credit, the maximum for which the country is elegible. The renewable credit line, which Mexico can draw on or not as it chooses, has a one year term.
The purpose of the line, equal to 59.5% of Mexico's reserves as of March 27, is to reassure markets that Mexico has plenty of reserves with which to meet its foreign debt obligations.
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