Mexico International Reserves at Historic level; Surpass country’s external debt.

The Mexican government has 274,000 million dollars to face any financial eventuality, 39% more than the amount of the country’s external debt, said the Ministry of Finance and Public Credit (SHCP).

In the Weekly Report of his Spokesperson, he pointed out that with these resources, sum of credit lines and international reserves, it is the first time that the Mexican government has such a broad international liquidity availability, which marks a milestone in its economic history.

In addition, it allows the federal government to have resources if necessary and is a reflection of the confidence gained over the past six years, due to congruent economic policy decisions, strict fiscal discipline and compliance with a reduction in external debt such as proportion of the Gross Domestic Product (GDP) that is close to 45%.

Another factor that they consider important abroad, are the legal changes derived from the 14 structural reforms that President Enrique Peña Nieto proposed and that were approved by the Congress of the Union, he said.

The spokesman stressed that there are many elements that allow us to see a favorable perspective of the Mexican economy, as well as an endorsement for the certainty generated by the reforms and advances in economic, political and social matters.

“The important thing is that there are great signs of confidence towards Mexico and that the tax authorities comply with leaving good accounts, added the federal agency in charge of public finances.”

He noted that the financial management of the public sector in the present administration reached its peak of recognition and confidence abroad, with the expansion of credit lines by the Treasury and the Federal Reserve (central bank) of the United States (Fed. ).

Thus, Mexico became at the same time the only economy in Latin America that, due to its results, registers better evaluations of the international rating agencies, referred to the Ministry of Finance.

The signs of certainty and the impulse to the commercial and financial flows that have been generated in recent years, allowed Mexico to become the only country that has managed to renew a Stabilization Exchange agreement with the US Treasury, he noted.

With this, he added, he will be able to provide -only if necessary- up to nine billion dollars, as well as an additional credit for three billion dollars from the Fed.

These resources are added to the international reserves of Mexico that reach a level close to 174 billion dollars, together with the resources of the flexible credit line of the International Monetary Fund (IMF) for an amount equivalent to approximately 88 billion dollars. 

Source: Notimex, Forbes

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