Mexico is the first country to get a massive 47 billion US dollars credit , to tide over the massive economic crisis it is facing.
The IMF has started committing new credit lines for struggling countries under the new fast track clearance system which has been put in place recently.
As part of the credit support, the Mexico Central bank has slashed the bank interest rate by 75 basis points. Experts tracking Mexico, say that the loan could help the country to first stop the steep economic downturn it is facing.
If the global economy turns around within the next six to eight months, then there is a likely hood of Mexico turning the corner by 2010 beginning.
Mexico depends on US for over 80% of its trade and thus a reversal of US fortunes is vital. The industrial production fell by a massive 14% last month in Mexico, which is the steepest fall in over a decade.
Just a year back, Mexico has been thriving on the back of a strong US economy, but the sub-prime crisis exposed the danger of depending on a single customer.
Mexico might take longer time to reduce it’s dependence on US because entering other markets may not be that easy in the current economic situation.
There are many European countries which are waiting in queue for IMF bailout.