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No decision on Mexico's IMF credit line before November -Videgaray
June 26, 2014 / 6:35 PM / 3 years ago

No decision on Mexico's IMF credit line before November -Videgaray

MEXICO CITY, June 26 (Reuters) - No decision will be made on whether Mexico renews its $72 billion flexible credit line with the International Monetary Fund (IMF) before November, Mexican Finance Minister Luis Videgaray said on Thursday.

Videgaray said he had held preliminary talks with IMF Managing Director Christine Lagarde about extending the line, which has never been used but provides Latin America’s no. 2 economy with a helpful insurance policy.

“We still haven’t formally entered the process of renewing it,” Videgaray said as Lagarde visited Mexico City.

In April, Videgaray told Reuters discussions to renew the credit line, which Mexico views as important given a pull-back in U.S. monetary policy, were due to start in the second half of this year.

Mexico’s central bank unexpectedly slashed interest rates to a record low earlier this month, saying a sluggish economy gave it room for a one-off cut to spur growth without fanning inflation pressures.

Mexican growth sank to a 4-year low of 1.1 percent in 2013. (Reporting by Michael O‘Boyle; Writing by Gabriel Stargardter; Editing by Dave Graham and Meredith Mazzilli)

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