News Brief No. 95/4

News Brief: Camdessus Sees US$7.8 Billion IMF Credit for Mexico

January 26, 1995

Michael Camdessus, Managing Director of the International Monetary Fund, said today he has received a Letter of Intent from the Mexican authorities in support of Mexico's request for an 18-month stand-by credit of SDR 5.259 billion (about US$7.759 billion). The Letter of Intent is being submitted immediately to the IMF's Executive Board, which is expected to consider Mexico's request on February 1, 1995.

"The Mexican authorities have designed a program that seeks to achieve rapidly a further strengthening of public finances, a tightening of monetary conditions, and a deepening of structural reforms with a view to sharply reducing the current account deficit and bringing it soon to a sustainable level. This program is strong, coherent, and credible and it deserves the full support of the IMF and the international community," Camdessus said.

"The urgent need to set the Mexican economy on a path of sustained growth and to reestablish confidence is reflected both in the unprecedented amount of the access to the IMF's resources and the accelerated consideration of Mexico's request. The IMF's Executive Board has followed the Mexican situation very closely, and I am confident that it will approve Mexico's request in a strong signal that the international community is fully behind this program for restoring health to the Mexican economy," Camdessus added.