U.S. exports to China likely to double in ‘totally done' trade deal    Consultations to name Lebanese PM delayed until Thursday    Qatar FM says early talks with Saudi Arabia have broken stalemate: CNN    Klopp hails Gomez as Liverpool defence gets back on track    Live score: Zamalek v Talae El-Geish (Egyptian Premier League)    Barcelona vs. Madrid threatened by political protest    Chinese yuan, Aussie dollar off 4-month peak, sterling ticks up    Egypt's economy to become stronger in 2020 with 15% surge in profits – Hermes    Egypt's c.bank allocates $3.1 billion to support tourism sector    Egypt's Sisi calls for decisive stance against countries that back terrorism    Japan sees local govt. sign-ups for evacuation insurance triple in 18 months    A global coalition allocates $82 bln to fight poverty globally    New Zealand opens markets for Egyptian orange exports for first time since 2017    Endeavour, Centamin to conduct due diligence to assess possible merger    Egypt's Kahraba starts training session at El Tetch    Japanese schools' project essential for citizen-building strategy, Sisi says    Egypt's famed marionette musical El-Leila El-Kebira to take part in Tunisia's children festival    Home-cooked food in Iraqi square brings protesters together    1st phase of Sharm El-Sheikh museum construction works completed: Antiquities Ministry    A Sphinx statue uncovered in Minya's Tuna El-Gebel    Uber launches appeal to regain London taxi license after suspension    Ahly inks Egypt's forward Kahraba on four-and-a-half year deal    Google reveals Egypt's top internet searches list for 2019    Helwan University holds conference on African studies    Rain, cold temperatures expected ahead in Cairo    BREAKING: Algeria declares former PM Tebboune winner of presidential election    Protesters hang gunman in Baghdad square: Officials    Hundreds protest in central Algiers against disputed election    Egyptian Weightlifting Federation's officials referred to prosecution over doping crisis – ministry    Apple's CEO spotted sampling Singapore's foods in neighborhood market    Here is the full list of Golden Globes 2020 nominations    Even being big, burly one needs his mother    Adam Sandler threatens to make ‘so bad' movie if he doesn't win Oscar    Egypt's Tahrir Square among top Reuters photos of a decade    Egypt names 16 new governors ahead of anticipated Cabinet reshuffle    Egypt's MPs back potential return of information minister post in expected reshuffle    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

IMF says Mexico credit line may be cut from current $74 bln
Published in Amwal Al Ghad on 21 - 11 - 2019

The International Monetary Fund's (IMF) 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 Novmber 28.
Mexico first received the credit line, which serves as a precautionary instrument, for $47 billion in 2009 during the global financial crisis.
It increased to $88 billion in 2016 after a plunge in oil prices and amid concern about then-candidate Donald Trump‘s pledge to take the U.S. out of the North American Free Trade Agreement. It was reduced to $74 billion at Mexico's request after a successor trade deal was negotiated.
"Mexico has basically expressed their intent to reduce the size of the FCL," Werner said. "On the other side, we know that there are still tons of risks in the world economy, and so Mexican authorities have continually expressed their desire to keep this instrument. It's become a part of their shield to external shocks."
The IMF and the the administration of President Andres Manuel Lopez Obrador in September said that Mexico was interested in renewing the credit line. The fund at the time said that there had been no discussion about the size. Mexico pays a commitment fee for the access to the credit line, and the fee increases based on the amount available to borrow.
Awaiting Argentina Plan
Asked about Argentina, Werner said he's open to President-elect Alberto Fernandez's idea of a social pact, which would involve an agreement between businesses, labor unions and the government on salaries and prices in an effort to control inflation. He cited as an example the social pact that helped stabilize the Mexican economy in the 1990s, when he was an economist at the nation's Finance Ministry and central bank.
A social pact could "lend legitimacy to whatever policy package is put into place by having everybody at the table," Werner said, but added that it should be used alongside other mechanisms.
The IMF last year gave a record $56 billion loan to Argentina under Fernandez's predecessor, Mauricio Macri, who lost last month's election in part due to public outcry over the spending cuts put in place to meet targets in the IMF deal.
Werner wouldn't comment on potential changes in the accord, such as fiscal targets, disbursements or a possible debt haircut, before seeing details of Fernandez's economic plans. IMF Managing Director Kristalina Georgieva stressed to Fernandez in a call on Tuesday the fund's "readiness to engage."
"We don't know what Argentina wants," Werner said. "We are still waiting for more technical engagements to give us some signal of what the Argentinian government wants to undertake."
Source: Bloomberg

Clic here to read the story from its source.