Advertisement
YOU ARE HERE: LAT HomeCollectionsBanks

BRIEFLY

A group of banks affirmed a Mexico loan plan.

August 20, 1986

The committee of commercial banks overseeing bank credit negotiations with Mexico agreed to provide a third of a $1.6-billion short-term loan to the Mexican government. The "bridge loan" is intended to keep Mexico from depleting its foreign reserves until it begins receiving loans under a medium-term package negotiated with the International Monetary Fund. Mexico, which has foreign debts of about $96.6 billion, must repay the banks' portion of the bridge loan when it receives the first payment under the $12-billion IMF package. Another one-third of the bridge loan is to be provided by the United States, with the rest coming from Japan and central banks in Europe and Latin America.

Advertisement
Los Angeles Times Articles
|
|
|