Mexico Creditor Banks Getting Documentation For Loan Package
NEW YORK (AP) _ The co-chairman of the committee of creditor banks negotiating $7.7 billion in new loans to Mexico says the package will be ″fully subscribed″ by its March 20 signing date.
However, William R. Rhodes of Citibank also noted that only about 97 percent of the total had been committed to by the banks so far.
About 500 foreign banks had given preliminary commitments last September to contribute to the loan package, which was part of a financial rescue package for the financially strapped nation.
However, final approval of the new bank lending had been slowed by reluctance by some banks to participate in light of Mexico’s financial problems. The steep drop in oil prices last year sharply cut Mexico’s foreign exchange earnings, impairing ability to meet payments on its $100 billion debt.
Mexican officials had said Tuesday that Mexico and the 13-bank advisory committee planned to sign the package March 20 in New York.
Rhodes said in a news release issued Wednesday that the committee had begun sending documentation for the bank loans to Mexico’s creditor banks.
In addition to the new bank loans, the package includes restructuring of $43.7 billion in debt, lowering of interest rates on $8.6 billion of other debt, and $1.2 billion contingent on Mexican economic growth.