The International Monetary Fund (IMF) has approved a $47 billion (£32 billion) credit line for Mexico, making it the first country to receive the Flexible Credit Line (FCL) facility designed to combat the economic crisis.
It is the largest financial arrangement in the history of the fund, which was boosted earlier this month when countries in the G20 agreed to triple its resources.
Poland has also requested $20.5 billion of credit under the facility but has not yet received approval.
Under the FCL countries can draw on the credit line at any time, without having to meet policy targets. According to the IMF, Mexico regards its one-year arrangement as “precautionary” and does not intend to draw on it.
It is aimed at countries with strong economic records. However, the fund notes that Mexican asset prices have fallen, slowing growth, and it faces risks because of financial links with other countries and trade links with America.
In a statement, John Lipsky, the first deputy managing director of the IMF, said: “Today is a historic occasion… The approval of this arrangement for Mexico represents the consolidation of a major step in the process of reforming the IMF and making its lending framework more relevant to member countries’ needs.”
Poland requests IMF credit line