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The IDB emphasizes the positive impacts of the stand-by agreement between Mexico and IMF

MEXICO CITY -- Inter-American Development Bank President Enrique V. Iglesias today emphasized the importance of the stand-by agreement, which has been reached between the International Monetary Fund and the government of Mexico, as an important step in recognizing Mexico’s achievements in economic policy-making.

The agreement will have positive effects on economic growth, which will, in turn, strengthen Mexico’s capacity to fulfill its external financing obligations. The agreement for $4.2 billion in financing over 17 months provides additional comfort to international financial markets as the country prepares for the upcoming election period.

The IMF program, and those of the other international financial institutions such as the IDB, supports the Mexican government’s economic program and the goals that the government has established for its fiscal performance. These programs recognize the prudent efforts the government is making with respect to managing its external debt and modernizing the financial system.

The strategy and programs of the IDB play an important role in the Mexican government’s efforts to advance social development and economic growth. The strategy emphasizes ongoing policies to promote decentralization by strengthening the financial and administrative capacities of state and local governments, so as to better serve their constituents and to reduce poverty.

The IDB anticipates a financial program of approximately US$3.5 billion with the Mexican government over the next three years. The planned operations are directed mainly toward further financial and administrative strengthening of states and municipalities; social programs directed toward the lowest income groups; and investment in infrastructure supporting the productive sectors.

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