No strings attached

The IMF hopes a credit line for Mexico may set a trendRUMOURS that a country is in talks with the IMF are often met with loud denials. That is because the funds loans usually come with so many unpopular strings attached, such as public-spending cuts and interest-rate increases, that any government that approaches them is considered to be on its knees. Even the fund admits there is a stigma to borrowing from it.All the more reason why an announcement by Felipe Calderon, Mexicos president, on March 31st caught peopleincluding holders of his countrys currencyby surprise. Amid the pomp of a state visit to London, he revealed that Mexico had secured a $47 billion credit line from the IMF, the first time it had received help from the fund since the 1995 peso crisis. The reason he was happy to be so forthcoming is that Mexico is accessing an IMF credit facility launched late last month with a complete lack of conditions. The Flexible Credit Line is aimed at countries that the IMF deems to be in good economic health but that are facing temporary financing difficulties. Mexico has no immediate plans to draw on it. However, on April 1st the central bank said it would tap a $30 billion currency swap from Americas Federal Reserve.