Monetary Fund OKs $1.7-Billion Loan to Mexico
The International Monetary Fund today gave final approval to a $1.68-billion loan to Mexico after receiving assurances that a $6-billion commercial bank loan to the nation is virtually complete.
The approval, by the IMF’s executive board, was conditional on commercial banks assembling commitments for about 90% of their own loan package to Mexico.
IMF officials and Citibank, which heads Mexico’s Bank Advisory Committee, said the so-called critical mass of commitments from banks around the world had been reached.
The IMF announcement means that a remaining $750 million of a $1.68-billion “bridge loan” to Mexico from the United States and other industrial nations, Latin nations and commercial banks will be paid out soon.
Oil-producing Mexico began negotiating in earnest with the IMF after falling energy prices badly dented its export revenues and raised fears that it would be unable to service its $98-billion foreign debt.
After the IMF’s tentative approval of Mexico’s program of economic reforms in August, it conditionally approved the standby loan, but only after Mexican negotiators threatened to walk away from the talks.
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