Mexico's Financial Crisis:

Origins, Awareness, Assistance, and Initial Efforts to Recover

GGD-96-56: Published: Feb 23, 1996. Publicly Released: Feb 23, 1996.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO examined Mexico's financial crisis, focusing on the: (1) origins of the crisis; (2) extent to which the U.S. government and the International Monetary Fund (IMF) were aware of Mexico's financial crisis; (3) U.S. and IMF response to the crisis; and (4) Treasury's use of the Exchange Stabilization Fund (ESF) to fund financial assistance to Mexico.

GAO found that: (1) Mexico's financial crisis began in 1994 amid growing concern over Mexico's fiscal and monetary policies and exchange rate system; (2) although the United States expressed concern over Mexico's short-term exchange rate policies, the Federal Reserve and Treasury did not forsee the magnitude of the crisis; (3) U.S. and IMF assistance to Mexico was intended to help Mexico overcome its short-term liquidity crisis and to prevent those effects from spreading to emerging foreign exchange markets; (4) the United States pledged up to $20 billion in loans and security guarantees to Mexico under ESF, and IMF pledged $17.8 billion to Mexico under a standby arrangement to be disbursed over 18 months; and (5) the Treasury Secretary acted within his discretion by using ESF funds to provide assistance to Mexico to promote a stable exchange rate system.

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Jun 6, 2016

May 26, 2016

May 18, 2016

Apr 6, 2016

Mar 30, 2016

Feb 29, 2016

Feb 25, 2016

Looking for more? Browse all our products here