Tuesday, December 14, 2010

A recurring theme...

...on this blog. This should not surprise readers here.

MEXICO CITY (Dow Jones)--The International Monetary Fund said Tuesday it plans to expand a precautionary credit line to Mexico to around $73 billion from $48 billion and extend the facility for another two years, at the request of Mexican authorities.

The IMF implemented the existing flexible credit line during the economic crisis in 2009, essentially raising Mexico's international reserves and offering a vote of confidence in the country's economic and fiscal situation.

Tuesday, IMF Managing Director Dominique Strauss-Kahn welcomed a request by Mexico's Foreign Exchange Commission, made up of Finance Ministry and Bank of Mexico officials, to expand and extend the credit line.

"We're not imposing conditionality, we're just recognizing that the government has the right policies in place," Strauss-Kahn said at an event. "Because you're doing well, we'll be happy to provide you--without asking anything else--this financial support that you may use, or not. I hope not."

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