Mexico’s finance ministry said on Sunday that it will speak to the central bank to allow the government to take advantage of a recent allocation of more than $12 billion in special drawing rights (SDRs) from the International Monetary Fund (IMF).
President Andres Manuel Lopez Obrador had proposed earlier this month that the money could be used to pay down debt that carries high-interest rates, sparking a debate over the appropriate use of these financial instruments.
It is still unclear whether those funds could be used to repay debt.
The finance ministry said in a note that $12 billion has been allocated to the international reserves, which are managed by the central bank, or Banxico, of Latin America’s second-largest economy.
“The objective of this exchange is fiscal discipline: by paying down this debt, we are saving costs as well as bringing down debt levels as a consequence, which is positive for our budget,” it said.
SDRs are the IMF’s unit of exchange, made up of dollars, euros, yen, sterling, and yuan. To spend them, countries must arrange an exchange for underlying currencies.
The finance ministry also said that IMF funds provided to Mexico will not be included in the 2022 budget.
Source: El Financiero
more recommended stories
Valladolid, Yucatan and Valladolid, Spain strenghten ties at Madrid’s FITUR 2022
“Valladolid has enormous development potential, which.
A truck driver drives 20 km in the opposite direction in the Mérida-Cancún Hwy (Watch Video)
During its journey, the truck almost.
Mauricio Vila to watch closely the Maya Train Project construction works in Yucatan
Governor Mauricio Vila Dosal held a.
Morelos Governor Cuauhtémoc Blanco denounces narco-political network in the state
Lots of politicians have ties to.
Villa María and its cenote, the natural attraction inside the historic center of Mérida
Only three known cenotes remain within.
Yucatan beekeepers position the state in first place nationwide in honey production
Among the Maya inheritances that Yucatan.
Vila and Fonatur Director reaffirm their commitment to continue promoting projects
Vila Dosal and the federal official.
Mexican Navy will take control of the security at Mérida Airport
The Mexican Navy (SEMAR) will be.
Yucatan Restaurant Sector severely affected by the unstoppable price increase
The restaurants are resisting this increase.
Expansion of the Electric Network in Chelem, Yucatan
Progreso City Council, will expand the.