The Inter-American Development Bank today announced the approval of a US$100 million loan to Mexico to support the second phase of a job training and employment program.
Most of the IDB financing will support the BECATE job training grants program, which provides unemployed or underemployed people stipends while they receive training at businesses. During the first phase of the program people who received grants attained high levels of placement in jobs after completing their training.
The IDB will also help finance surveys and the development of a monitoring and evaluation system to assess the impact of BECATE and other programs run by Mexico’s Labor Ministry (STPS). This component of the program will be coordinated with the CONEVAL national council for the evaluation of social development policy.
In the framework of the program and in collaboration with state governments, the STPS plans to strengthen and expand the coverage of the National Employment Service, training its agents to provide better services to people seeking jobs or training.
The STPS is also developing an Internet-based employment portal that will aggregate information on vacancies, employment placement services, training, job fairs and workshops.
The new loan is for 25 years, with a 39-month grace period and an interest rate based on LIBOR. Local counterpart funds will total US$100 million. For the first phase of the program, in 2001 the IDB approved a US$300 million loan.