Mexico Pays Off IMF Debt of $3 Billion

Mexico, basking in soaring oil prices and a booming economy, paid off its outstanding debt with the International Monetary Fund. The Finance Ministry said it made a $3-billion prepayment to the IMF, closing the books ahead of schedule on two lending packages from 1995 and 1999. The loans were originally due to be paid off between September of this year and March 2005. But President Ernesto Zedillo, who will hand over the presidential sash to Vicente Fox on Dec. 1, has vowed to also hand over a sound economy that will not implode once the new government takes over. The funds are expected to come from the country’s international reserves, which stood at $32.5 billion at the end of last week.