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World Bank Supports Mexico with $751 Million Loan

13 September, 2012

The World Bank has approved a $751.9 million US dollar loan with the intent of putting public policies in place that will strengthen Mexico’s economy and encourage job growth. The purpose of the loan is to help the Mexican government with its work to bring about regulatory, legal, and administrative adjustments that will advance performances of infrastructure services and input markets, refresh and streamline the process of starting a new business, and provide access to new economic markets. These activities will help Mexico become a competitive economic entity, as reported by Infozine. 

The plan for achieving these results relies on four cornerstones. First,to increase the ambitious climate in important sectors - for instance, the public acquisitions system and telecommunications. Second, to clarify current regulations, with the end goal of lessening the cost of business transactions, especially those related to taxes and trade with other countries, and also to encourage the acceptance of new technologies. Third, to develop the current framework, with the end goal of enhancing access to key financial services and cultivating financial system reliability and clarity. Fourth, to encourage partnerships between the public and private sectors in the area of infrastructure, so that the caliber of important infrastructure services can be improved. 

The current government of Mexico wishes to put policies in place that will ensure the Mexican economy only gets stronger in the years to come.  

Gloria Grandolini, who is the current World Bank Director for Mexico and Colombia, said “We support Mexico’s government in the implementation of long-term public policies. We recognize the country’s achievements in maintaining a solid macroeconomic stability as well as efforts to implement a reform agenda with needed structural reforms. With this program, we seek to support the consolidation of economic growth as well as the generation of quality labor opportunities for a growing labor force demanding them.”

The expected consequences of these changes include more Internet and broadband users, simplification of public acquisitions, a reduction in foreign trade paperwork, an increase in transactions done over cell phones, an growth in private investment, and a decrease in costs for businesses that adhere to government regulations. 

This project has a projected end date of January 2012, and the positive results will help to increase Mexico’s economic power and competitiveness. The Secretariat of the Treasury and Public Credit is the organization at the helm of carrying out this loan, and they in turn have placed the National Savings and Financial Services Bank (or, in Spanish, BANSEFI) as the financial agent.

Topics: Economy Mexico