WORLD BANK LOANS MEXICO 400 MLN DLRS
The World Bank said it has loaned
Mexico 400 mln dlrs to help support an agricultural credit
project.
    The project hopes to increase agricultural productivity,
exports, and real farm income by providing credit to private
farmers, ranchers and agro-industries, the bank said.
    The loan will be used for lending mainly by commercial
banks and the National Rural Credit Bank, Mexico's largest
agricultural credit lender, the bank said.
    It also said the project hopes to aid in reducing the
government's interest rate and credit subsidies.
    The project will also support improvement of the
agricultural credit system through reduction of subsidies for
credit and crop insurance, and increased domestic resource
mobilization, the bank said.
    The loan, guaranteed by the government, is for 15 years,
including three years of grace, at a variable interest rate -
currently 7.92 pct, the bank said.
 Reuter
