Camdessus Hails Early Repayment of Mexican Loans

• Pages: 30

Page 30

On January 15, IMF Managing Director Michel Camdessus welcomed an announcement by the government of Mexico that it would make an advance repayment to the IMF for the equivalent of $1.5 billion and pay off the remaining balance of $3.5 billion owed to the U.S. government under the financial package that the IMF helped to arrange in early 1995.

Commenting further, Managing Director Camdessus said "this package, together with the decisive policy actions taken by the Mexican authorities since then, has contributed importantly to stabilizing the economy and creating the conditions for the resumption of growth and jobs.

"The Mexican economy is now expanding at a good pace; inflation and interest rates are declining; export volume is up strongly and imports have recovered; the external current account deficit is small; and there was a strong increase in net international reserves in 1996.

"I welcome...