WASHINGTON,  – The IMF announced Friday it has renewed a two-year credit line for Mexico for $50 billion. The Mexican economy remains exposed to risks, including from the impact of Covid-19, and the flexible credit line (FCL) will provide insurance against those risks and bolster market confidence, the International Monetary Fund said in a statement.

The government considers the credit line “precautionary” and has gradually reduced the amount since 2017, when it totaled nearly $90 billion, the IMF said. “The Mexican economy is rebounding from its deepest recession in decades, spurred by strong US growth and rising vaccination rates,” said Geoffrey Okamoto, the IMF’s first deputy managing director.

“The authorities have successfully maintained external, financial, and fiscal stability, despite the pandemic-related challenges.” The IMF first approved the FCL for Mexico in 2009, and it is one of five countries that has received the backstop along with Colombia, Chile, Peru and Poland, which exited the arrangement in late 2017. None of the countries has drawn on the funds, the IMF said.