The International Monetary Fund has approved the renewal of Mexico’s flexible credit line to $72 billion, Bloomberg reports. The two-year loan will replace a $48 billion facility due to expire in April 2011.
It is a precautionary credit line to Mexico to help insure the country against external risks and Mexico does not intend to use it. The flexible credit line is a new instrument created by IMF to help countries with strong fundamentals to ward off financial crisis, adds AFP.
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