IDB Invest and the Mexican Business Council has planned to offer $12 billion in loans annually to support small and medium-sized businesses in Mexico affected by the Covid-19 pandemic, media reports said. IDB Invest is part of the Inter-American Development Bank.
It is reported that they urged local commercial banks, international investors, and development banks to participate in the plan which aims to offer loans to small and medium-sized businesses at affordable prices. Currently, there are 4.1 million small and medium-sized businesses in the country.
The two companies said in a joint statement, “IDB Invest will seek the collaboration and support of local commercial banks, international investors and development banks to mobilise additional resources with the aim of expanding the reverse factoring line.”
The joint plan developed by both companies aims to help 30,000 small and medium-sized firms in Mexico. It is reported that Mexico’s Finance Ministry fully supports the plan. “IDB Invest seeks the expansion, acceleration, and democratisation of access to credit for the SMEs that make up the value chains of large companies. This is part of its strategy to support the economic stability of the region through the private sector since maintaining liquidity in value chains and trade multiplies the social and economic benefit,” the statement said.
More recently, IDB Invest had priced its bonds worth $1 billion in its largest debt sale ever, local media reported. Last October, the company had issued $500 million in five-year notes with a coupon of 1.75 percent. According to Refinitiv data, those notes were sold for 104.328 to yield 0.75 percent.