Mexico has $3.6 bln in credit for housing industry
....and they want us to believe that illegal aliens from Mexico are starving and they have to come here to realize the American Dream of buying and owning their own homes? Yeah right.......
Mexico has $3.6 bln in credit for housing industry
Wed Nov 26, 2008 3:53pm EST
MEXICO CITY, Nov 26 (Reuters) - Mexico has locked in $3.6 billion in multilateral loans to help its housing industry withstand the global financial debacle, but banks also need to do their part, a senior official said on Wednesday.
The Inter-American Development Bank approved a credit for $2.5 billion on Tuesday for Mexico's Federal Mortgage Society, society head Javier Gavito said at an event.
The World Bank has already pledged $1.1 billion for the society, known as the SHF, to offer credit to Mexico's home builders and small non-bank mortgage lenders.
Many of Mexico's builders and small mortgage lenders have depended heavily on short-term debt and are struggling to renew commercial paper as risk-averse banks hold onto their money.
"The credit crunch has been of such a magnitude that the (multilateral credits) are still not enough to make up for it," Gavito said. "The private sector has to return."
Mexico's banking sector does not have a subprime niche and is healthy compared to banks on Wall Street, where widespread mortgage lending to subprime clients helped start the global crisis.
But in recent months, liquidity in the commercial paper market has dried up as risk aversion escalates around the world.
The SHF acts as a market maker in Mexico's small but fast-growing mortgage-backed debt market and currently holds around 28 percent of issues made by private lenders. ($1 = 13.20 pesos) (Reporting by Noel Randewich; Editing by Gary Hill)
