1. This note assesses the impact of the proposed Flexible Credit Line (FCL) arrangement for Mexico on the Fund’s finances and liquidity position, in accordance with the policy on the FCL.1 The proposed arrangement could cover a 12-month period, and be in an amount of SDR 31.528 billion (1,000 percent of quota). The full amount of access proposed would be available throughout the arrangement period, in one or multiple purchases.2 The authorities intend to treat the arrangement as precautionary.
See GRA Lending Toolkit and Conditionality—Reform Proposals (3/13/09), and GRA Lending Toolkit and Conditionality—Reform Proposals (3/24/09).
If the full amount is not drawn in the first six months of the arrangement, subsequent purchases are subject to a review of Mexico’s continued qualification for the FCL arrangement.
A more detailed description and analysis of external and public debt is provided in the staff report.
The largest GRA commitment in SDR terms has been SDR 27.375 billion (Brazil’s 2002 SBA following its augmentation in 2003), while the largest GRA credit exposure was SDR 23.359 billion (to Brazil in 2003).
The figures on debt service used in this report are calculated assuming that full amount available under the arrangement is purchased upon approval of the arrangement, and that all repurchases are made as scheduled.