IDB and the Mexican business sector launch credit program for small and medium enterprises

According to estimates, there are 4.1 million micro, small, and medium-sized enterprises in the country

IDB and the Mexican business sector launch credit program for small and medium enterprises
The IDB asked local banks, commercial banks, international investors, and development banks to collaborate - Photo: Brendan Smialowski/AFP
English 27/04/2020 16:40 Newsroom/EL UNIVERSAL in English Mexico City IDB, Ivette Saldaña Actualizada 16:49
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Amid the COVID-19 pandemic, the Inter-American Development Bank and the Mexican Business Council (CMN) are launching a credit program for 30,000 micro, small, and medium-sized enterprises (Mipymes). The IDB and the CMN are asking national and international investors to join the initiative.

The Finance Ministry will support the program with credits for up to USD $12 billion. The credits represent a financing alternative and have very attractive interest rates

The IDB asked local banks, commercial banks, international investors, and development banks to collaborate. 

According to estimates, there are 4.1 million micro, small, and medium-sized enterprises in the country. Moreover, these companies produce 42% of the GDP and generate 78% of jobs; however, only 23% of them are financed by commercial banks. 

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In its website, the Inter-American Development Bank explains that along with IDB Invest, it will deploy “financial and technical resources made available to borrowing member countries and companies to address the crisis created by COVID-19.”

Its economic plan includes the “assistance to SMEs, which account for 70% of the region’s jobs, through financing programs and short-term liquidity guarantees, foreign-trade financing and guarantees, loan restructuring, and support for strategic supply chains.”

What is the Inter-American Development Bank?

The IDB Group is the leading source of development finance for Latin America and the Caribbean. It provides financial solutions and development know-how to public- and private-sector clients. The Group comprises the IDB, which has worked with governments for 60 years; IDB Invest, which serves the private sector; and IDB Lab, which tests innovative ways to enable more inclusive growth.

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