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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Trump, Brexit Threats Have Mexico Lining Up $88 Billion IMF Loan Eric Martin EMPosts

5/31/16 Bloomberg 

Donald_Trump)Mexico’s unexpected move to boost its credit line from the International Monetary Fund suggests the nation isn’t taking lightly the prospect of a Donald Trump presidency or Britain’s exit from the European Union.

On Friday, the country increased the size by a third to a record $88 billion and extended it by two years. The decision surprised market watchers because the previous $67 billion agreement wasn’t set to expire until November.

To Grupo Financiero Banorte SAB — Mexico’s biggest publicly traded bank — the government is seeking to bolster its ability to withstand overseas shocks in the event of a so-called Brexit and a victory by Trump, who has vowed to implement policies that may harm Latin America’s second-biggest economy. Mexico is already contending with increased volatility in its financial markets. The peso tumbled 7 percent in May alone, prompting foreign investors to slash holdings of the nation’s bonds.

“The Mexican authorities tried to negotiate the increase before a potentially volatile summer,” said Alejandro Padilla, the head of fixed-income and currency strategy at Banorte in Mexico City. “There’s big uncertainty surrounding Brexit and the potential effects for financial markets. The theme of Trump and the U.S. elections is also something you need to consider, because he’s been very clear about his foreign policy.”

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UPCOMING EVENT | Power Play: Energy and Manufacturing in North America

power playWHEN: Tuesday, May 10, 9:00-10:30 AM

WHERE: 6th Floor Auditorium, Woodrow Wilson Center

Click to RSVP.

The Wilson Center’s Mexico Institute, Canada Institute, and the International Monetary Fund are pleased to invite you to our launch of the book “Power Play: Energy and Manufacturing in North America.” Despite the recent fall in energy prices, fuller development of energy resources in North America has potentially important implications for global energy markets and the competitiveness of North American manufacturing industries. The book “Power Play: Energy and Manufacturing in North America” describes the transformation of the energy landscape in North America due to the upsurge in unconventional energy production since the mid-2000s and tells the story of the energy-manufacturing nexus from the perspective of Canada, Mexico, and the United States, and the region as a whole. Based on the research done at the International Monetary Fund, the book discusses the energy boom and its macroeconomic implications for the three countries individually and for the region overall, exploring also how the changing energy landscape can affect the potential benefits of greater integration across the three North American economies.

Keynote Speaker

Alejandro Werner
Director, Western Hemisphere Department
International Monetary Fund

Additional Speakers

Carlos Hurtado
Alternate Executive Director for Mexico
International Monetary Fund

Jim Prentice
Global Fellow, Canada Institute, Wilson Center
Former Premier of Alberta
Former Minister of the Environment, Canada

Meg Lundsager
Public Policy Fellow, Wilson Center
Former U.S. Executive Director and Alternate Executive Director, International Monetary Fund

Moderator

Duncan Wood
Director, Mexico Institute, Wilson Center

Click to RSVP

IMF urges Mexico to undertake further tax reform

Reuters, 11/26/2013

imfMexico’s recent tax overhaul does not do enough to curb the government’s dependence on oil revenue while other major reforms may not boost economic growth as much as authorities forecast, the International Monetary Fund said on Tuesday.

“With the prospect of declining oil production over the next decade, the federal government needs to beef up its collection on non-oil revenues,” the IMF said in a report on the fiscal reform that accompanied its so-called Article IV consultation with Mexican authorities.

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Mexico’s economic potential, slowdown “exaggerated” – IMF official

pesos5Reuters, 10/31/2013

While Mexico’s economy was overly hyped in the early months of this year, so too are reports of the slowing of Latin America’s No. 2 economy, a senior International Monetary Fund (IMF) official told a local newspaper on Thursday.

“(Mexico’s potential) was clearly exaggerated in January, February and March, but on the other hand, perhaps now, so is (the deceleration),” Alejandro Werner, director of the IMF’s western hemisphere department, said in an interview with daily Reforma, referring to glowing reports of Mexico’s economic scope in the English language press.

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IMF cuts Mexico’s growth outlook, sees modest boost from reforms

imfReuters, 10/08/2013

The International Monetary Fund slashed its 2013 growth outlook for Mexico on Tuesday after a weaker-than-expected first part of the year, while it dialed back expectations for growth in Brazil next year.

The IMF said Mexico’s gross domestic product (GDP) would grow 1.2 percent this year, down from a 2.9 percent expansion it forecast in July, due to low government spending, a drop in construction and slack U.S. demand for local exports.

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