• The IMF approved on November 13, 2025, a successor two-year arrangement for Mexico under the Flexible Credit Line (FCL), designed for crisis prevention, of about US$24 billion.
• Mexico qualifies for the FCL by virtue of its very strong economic fundamentals and institutional policy frameworks and track record of macroeconomic performance and policy implementation.
• The authorities intend to continue to treat the arrangement as precautionary.

WASHINGTON, USA – The executive board of the International Monetary Fund (IMF) approved a successor two-year arrangement for Mexico under the Flexible Credit Line (FCL) in an amount equivalent to SDR 17.8254 billion (about US$24 billion, equivalent to 200 percent of quota) as requested by the authorities and noted the cancelation by Mexico of the previous arrangement. The Mexican authorities stated their intention to treat the new arrangement as precautionary.

This is Mexico's eleventh FCL arrangement since 2009. Since 2017, Mexico has been gradually reducing access under its FCL arrangements. The arrangement approved on November 29, 2017 (see Press Release No. 17/459 ) was for an original access amount equivalent to SDR 62.389 billion (about US$88 billion), which, at the request of the Mexican authorities, was reduced to SDR 53.4762 billion (about US$74 billion) on November 26, 2018 (see Press Release No. 18/440 ). The arrangement approved on November 22, 2019 (see Press Release No. 19/431 ) was for an access amount equivalent to SDR 44.5635 billion (about US$61 billion), which was reduced in the successor arrangements approved in November 2021 (see Press Release No. 21/340 ) to SDR 35.6508 billion (about US$50 billion) and in November 2023 (see Press Release No. 23/398 ) to SDR 26.7381 billion (about US$35 billion).

Following the executive board's discussion on Mexico, Nigel Clarke, deputy managing director and acting chair, made the following statement:

Economic activity in Mexico remains soft, constrained by needed fiscal consolidation and still restrictive monetary policy, as well as the dampening effect of trade tensions. Nevertheless, the economy has shown resilience and stability in the face of heightened external uncertainty, owing in part to its very strong macroeconomic policies and institutional policy frameworks, including a flexible exchange rate regime, a credible inflation targeting framework, a fiscal responsibility law, and a well-regulated financial sector. Mexico continues to meet all the Flexible Credit Line (FCL) qualification criteria.

The authorities have embarked on an appropriate recalibration of the policy mix, easing monetary policy amid reduced price pressures and unwinding the 2024 fiscal expansion. Going forward, more ambitious fiscal consolidation would prevent further upward drifts in public debt and create valuable fiscal space to cope with shocks. Meanwhile, clear evidence that inflation is on a path to the 3 percent target would allow for further monetary easing. Raising Mexico's potential growth will require closing infrastructure gaps, strengthening the rule of law, and deepening integration with global trading partners. The authorities are firmly committed to maintaining strong policies.

Mexico remains exposed to elevated external tail risks. Trade-related risks have risen since the last FCL review. On the other hand, financial conditions have become more accommodative, and the country's reserve buffers have increased.

The new arrangement under the FCL will continue to play an important role in supporting the authorities' macroeconomic strategy and provide insurance against tail risks while bolstering market confidence. Its lower level of access reflects the Mexican economy's increased buffers and resilience. The authorities intend to treat the arrangement as precautionary.

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