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FEDERAL RESERVE BANK OF NEW YORK Circular No. 9 3 5 6 September 2, 1982 Multilateral Arrangement for Short-Term Financing for Banco de Mexico To All Depository Institutions in the Second Federal Reserve District: The following statem ent was issued on August 30 by the Board of Governors of the Federal Reserve System: As part of a multilateral financial transition program being arranged with Mexico, the U. S. Treasury Department and the Federal Reserve today announced their participation in an arrangement, in cooperation with the central banks of other Group of Ten countries,1 Spain and Switzerland, under the aegis of the Bank for International Settlements, designed to provide short-term financing to the Banco de Mexico. Financing available under the multilateral arrangement totals $1.85 billion, of which the Treasury will provide $600 million and the Federal Reserve $325 million through swap arrangements. The multilateral financing is in support of Mexico’s efforts to strengthen its economic and financial position. It provides for drawings by Mexico in line with progress toward agreement between the Mexican Government and the International Monetary Fund on an economic adjustment program which will enable Mexico to qualify for drawings under the IMF’s Extended Fund Facility. The multilateral arrangement for short-term financing announced today is part of an interrelated program of short-term and longer-term credits for Mexico. The total program involves the BIS and the IMF, as well as Mexican discussions with international banks regarding Mexico’s external debts. This overall multilateral effort is designed to provide an orderly transition to an economic adjustment program that the Mexican Government has announced it is developing. 'T h e Group of T en in c lu d e s B e lg iu m , C an ad a. F ra n ce, G erm an y , Ita ly , J a p a n , T h e N e th e r la n d s, S w ed en , th e U n ite d K in gd om and th e U n ite d S ta te s. Additional copies of this circular will be furnished upon request. A nthony M. S olomon , President.
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