Mexico Is Refinancing Pemex Debt After Getting IMF Reserves

09/07/2021

Source: Bloomberg

Mexico has begun a process of refinancing state-owned Petroleos Mexicanos’s debt, after the nation received a transfer of about $12 billion from the International Monetary Fund. 

President Andres Manuel Lopez Obrador said Monday that refinancing had begun, and restated that he wants to use newly issued IMF reserves to pay debt, but that he couldn’t provide further details. His spokesman Jesus Ramirez confirmed to Bloomberg News that Pemex’s debt is being refinanced.

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IMF urges Mexico’s government to spend more, expand welfare

10/06/2020

Source: Reuters

MEXICO CITY (Reuters) – Mexico should implement larger near-term fiscal support to alleviate economic distress, the International Monetary Fund said on Tuesday, recommending the government expand its welfare net and unemployment benefits.

In preliminary findings reported after a visit to Mexico, the IMF said Latin America’s second-largest economy should also further lower interest rates to help the recovery from the worst contraction since the 1930s Great Depression, largely induced by measures to contain the coronavirus pandemic.

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IMF approves smaller $61 billion credit line for Mexico

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11/25/19 – Reuters

By Andrea Shalal, Anthony Esposito

The International Monetary Fund said on Monday its executive board had approved a smaller two-year lending arrangement for Mexico worth $61 billion, replacing the current flexible credit line of about $74 billion.

It said the new arrangement would bolster market confidence at a time when trade uncertainty, a sharp pullback in capital from emerging markets and increased risk premiums posed continued external risks to the Mexican economy.

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IMF Says Mexico Credit Line May Be Cut From Current $74 Billion

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11/20/19 – Bloomberg

By Eric Martin and Patrick Gillespie

The International Monetary Fund’s board plans to vote on Mexico’s request to renew its flexible credit line, possibly for less than the current $74 billion, before it expires next week.

Mexico is interested in reducing the size now that there’s greater certainty around its trade relationship with the U.S., Alejandro Werner, the IMF’s Western Hemisphere director, said in an interview Wednesday at Bloomberg’s headquarters in New York. Werner said he expects the board’s decision before the current agreement expires Nov. 28.

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IMF says it will remain ‘strong partner’ of Mexico

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10/20/19 – Reuters

By Anthony Esposito and Lizbeth Diaz

The International Monetary Fund will remain a “strong partner” of Mexico, the organization’s managing director, Kristalina Georgieva, said on Sunday following a meeting with the heads of the Mexican Finance Ministry and central bank.

“The Fund will continue to be a strong partner as Mexico seeks to deliver economic stability and prosperity for all Mexicans,” Georgieva said on Twitter.

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IMF Warns About Uncertainty Over Lopez Obrador Policies

11/08/2018 – The New York Times

8414041294_197238d3d4_kBy The Associated Press

WASHINGTON — The International Monetary Fund is warning that uncertainty associated with the policies of the incoming administration of Mexican President-elect Andres Manuel Lopez Obrador persists and poses a significant challenge for the country’s economy.

The warning in an IMF report Thursday comes after a team visited Mexico last month to conduct an annual economic review.

The future hinges on the “steadfast implementation of structural reforms while ensuring continued macroeconomic stability,” the report said.

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Mexico’s Outlook in 5 Charts

11/20/2017 International Monetary Fund

The Mexican economy keeps growing, mainly thanks to its strong economic policies, even as the fate of the country’s trade deal with North America remains unclear. However, Mexico would still benefit from carrying out reforms for stronger and more inclusive growth. The main areas to tackle are inequality, corruption, obstacles holding back firms’ productivity, and tax collection to allow more room for public investment.

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EVENT ON MONDAY | The State of Mexico’s Economy

mexican pesosWHEN: Monday, January 9, 1:30-3:00pm

WHERE: 6th Floor Board Room, Wilson Center, Washington, DC

Click to RSVP

The Wilson Center’s Mexico Institute is pleased to invite you to an event with the International Monetary Fund’s Mexico team, who will present the conclusions of the recently-completed 2016 Article IV consultation with Mexico.

Mexico’s economy has been growing at a moderate pace, inflation is low, and the unemployment rate has been declining. Fiscal consolidation has begun and the financial system remains strong and resilient to severe shocks. It would be critical to adhere to the planned fiscal consolidation to put the public debt ratio on a downward path, and take steps to strengthen the commitment framework for fiscal policy. Steadfast implementation of the plan to reform PEMEX and strengthen its financial viability is also important. Future monetary policy decisions should continue to be guided by the objective of keeping inflation expectations anchored, while clear communication by the central bank is critical. The exchange rate should continue to act as the key shock absorber to help the economy adjust to external shocks. Significant progress has been achieved in strengthening financial sector prudential oversight but some gaps remain, especially in the governance framework of CNBV and IPAB. On the structural front, strengthening the rule of law and boosting female labor supply would boost potential output and reduce inequality and poverty. Going forward, Mexico will need to navigate an uncertain and complex external environment, with elevated risks of protectionism and heightened global financial market volatility.

Speakers

Robert Rennhack
Deputy Director, Western Hemisphere Department, IMF

Costas Christou
Advisor, Western Hemisphere Department, IMF

Alex Klemm
Senior Economist, Western Hemisphere Department, IMF

Damien Puy
Economist,Western Hemisphere Department, IMF

Fabian Valencia
Senior Economist, Western Hemisphere Department, IMF

Commentator

Christopher Wilson
Deputy Director, Mexico Institute, Wilson Center

Moderator

Duncan Wood
Director, Mexico Institute, Wilson Center

Click to RSVP

Mexico’s Carstens says will consider using IMF credit line -paper

10/10/16 Reuters

carstensMexico will consider using its $90 billion flexible line of credit with the International Monetary Fund in the event of an external shock, the head of the country’s central bank said in an interview published on Monday.

“It doesn’t mean we will immediately use it, but we’ll have to evaluate the circumstances and be prudent,” said central bank Governor Agustin Carstens in an interview with El Economista newspaper.

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Fitch: Mexico Better Than Brazil, Venezuela, Argentina…

06/29/16 Forbes 

Chichen_Itza_Temple_of_Kukulcan_SerpentWhen it comes to managing its debt, Mexico is better than Brazil, basket case Venezuela and Argentina, even as its new government is in the process of resuscitating the economy.

On Thursday, Fitch Ratings reaffirmed Mexico’s investment grade status of BBB+, a credit rating Brazil lost last year after getting it in 2008.

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