LIMA, Peru – Mexico and the Inter-American Development Bank today signed the contract of a $300 million policy-based loan to support the consolidation of a reform of the Mexican rural financial system.
Mexican Finance Secretary José Francisco Gil Díaz and IDB President Enrique V. Iglesias signed the document in a ceremony held on the eve of the annual meeting of the Bank’s Board of Governors, which will take place in Lima March 29-31.
The program supported by the IDB is designed to raise the efficiency and efficacy of financial services for rural sectors through the consolidation of Financiera Rural as an instrument to promote productive development in rural areas.
Coordination among different government programs for the rural sector will be reinforced, and steps will be taken to encourage the establishment of bank and non-bank financial intermediaries to serve rural areas.
The program reflects the IDB strategy of assisting Mexico’s efforts to promote rural credit, especially for small-scale producers. In this case, a viable financial institution will be created to strengthen the financial system and improve services for the most vulnerable groups of the population.
The program will have parallel financing from the World Bank, which supported the establishment of Financiera Rural.