The Inter-American Development Bank today announced the approval of a $250 million loan to Mexico to assist the consolidation of banking reform and to promote the continued safety and soundness of the banking system
The resources will support a government program designed to:
• Strengthen the legal and regulatory framework of the banking system.
• Complete the restructuring program for the banking sector and ensure the transfer of the ownership of the banks that had previously experienced difficulties back to the private sector in a transparent and timely manner.
• Support efforts to maximize the recovery of bank loans and other assets resulting from bank resolution programs and portfolio purchases.
• Implement viable arrangements for financing the costs resulting from banking sector stabilization.
The program will be carried out by the Bank Savings Protection Institute,* the Ministry of Finance,** and the National Banking and Securities Commission.
The IDB loan is for a 15-year term, with a 5-year grace period, at the variable annual interest rate, now 6.77 percent.
This program recognizes and builds upon progress achieved by the Mexican authorities in creating appropriate conditions for the development of a modern and sound banking sector.