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MEXICO CITY, Nov 26 (Reuters) - The International Monetary Fund will extend Mexico’s roughly $70 billion flexible credit line for two more years, the fund said on Wednesday.
The credit line, which was about to expire, has never been used but provides Latin America’s No. 2 economy with a helpful insurance policy. The line was granted to Mexico in April 2009.
Without the safety net, Mexico suffered one of the biggest hits among emerging market economies during the 2008-2009 financial crisis because of its close ties to the United States.
Mexico is one of just three countries with strong enough economic track records to get access to the line, which can be drawn on at any time and does not come with conditions, the IMF said.
Foreign investors have amassed a record 2 trillion pesos of Mexican peso-denominated government debt, and they hold around $174 billion in Mexican stocks, according to data on the central bank’s website.
The central bank has about $193 billion in international reserves. (Reporting by Alexandra Alper and Michael O‘Boyle; Editing by Grant McCool)