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To: Baba 2 who wrote (28567)	2/19/1999 11:30:00 AM
From: long-gone	Respond to of 116894

<<Great post>> Yeah BUT The Fed ain't the only one doing bailouts: (I'll supply the sub-title of)One must first be moral before they can note any "moral hazard": Mexico says starts talks on IMF loan refinancing By Caroline Brothers MEXICO CITY, Feb 16 (Reuters) - Mexico has started talks with the International Monetary Fund (IMF) on extending the maturity of some $8 billion in loans that fall due over the next two years, officials said on Tuesday. A Finance Ministry official confirmed to Reuters that Mexico had begun talking to the IMF about refinancing its debt with the Fund, contracted as part of Mexico's bailout after the 1994 peso crash. Mexico has long since repaid the over $20 billion it borrowed from the U.S. Treasury, but some $8 billion in IMF loans remain on central bank books, falling due in 1999 and 2000. Economists who participated in a conference call with Deputy Finance Minister Martin Werner and the ministry's chief of budget planning, Manuel Ramos Francia, earlier Tuesday said they too had confirmed Mexico had started IMF talks. ''They said they were talking to the IMF and there would be no change in current medium-term targets,'' said Juan Pablo Chavez, economist with IDEA in New York. ''They said they would prefer to smooth out the payments.'' The Finance Ministry official told Reuters that nothing had been made concrete yet, but that Mexico was exploring the possibility of refinancing the loans. Walter Molano, economist with BCP Securities, said an IMF delegation was due to arrive in Mexico shortly. ''Legally they can't restructure IMF debt, but they can get new money with longer terms,'' Molano said. The IMF will impose conditions in return for the loan, but Werner told economists any change in medium-term fiscal and monetary policy was unlikely. ''Mexico has been very disciplined about everything, and the spirit of the talk this morning was that this was paying off,'' said a New York economist who participated in the conference call. ''The talks will be in line with medium-term targets and the idea will be to smooth out payments,'' Chavez added. Molano said the IMF could impose milestones to measure progress in Mexico's recently announced electricity sector liberalization. ''I am only speculating, but that would be consistent with what we have seen in other countries,'' he said. Chavez thought it possible Mexico might ask for more cash than it currently needs from the IMF. ''They may include some money to have on hand as a kind of insurance policy,'' he said. biz.yahoo.com When you tie this with the recent Presidential trip to Mexico and the decision to declare them in line with the war on drugs, "What is going on"?