Reuters.- The Ministry of Finance and Public Credit (SHCP) of Mexico said that it will dialogue with the local central bank so that the Government can take advantage of a recent allocation of 12,200 million dollars in Special Drawing Rights (SDR) from the IMF to pay debt that it has high interest rates.
The president of Mexico, Andrés Manuel López Obrador, proposed in mid-August to use these funds for the advance payment of debt, generating a debate on the appropriate use of these instruments.
The 12,200 million dollars in SDRs went directly to the international reserves of the second largest economy in Latin America that are managed by the Bank of Mexico, the agency said in an informative note.
“The objective of this exchange is to pay for fiscal discipline. By canceling this debt, savings are achieved in its cost, as well as a benefit in the level of the debt and, as a consequence, a positive impact on the budget ”, he added.
Read: Citibanamex contradicts AMLO: debt cannot be paid with IMF resources
The Treasury also stressed that the funds that the IMF provided to Mexico, which are part of a strategy of the financial body to provide liquidity to its member countries and strengthen their international reserves, will not be included in the 2022 budget.
“In other words, these resources will not be considered as income of the Government and not as expenditure,” he said.
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