MEXICO GETS 205 MLN DLRS IN WORLD BANK LOANS
The World Bank said it approved two
loans to Mexico totalling 205 mln dlrs to provide financial
assistance to industrial companies and finance a project
dealing with agricultural extension services.
    Mexico's Nacional Financiera (NF), the recipient of both
loans, will receive 185 mln dlrs to be used to provide
long-term credit and equity funds to small and medium-sized
industrial enterprises, the bank said.
    It said a 20 mln dlr loan is being made to help finance a
project designed to test strategies to improve the quality and
cost effectiveness of agricultural extension services.
    The industrial enterprise project, estimated to cost 350.3
mln dlrs, aims to support companies threatened by high
inflation and adversely affected by increased competition
brought about by bank-supported trade liberalization measures.
    The bank said the 73.8 mln dlr extension services project
will examine strategies in 20 of Mexico's 192 rural development
districts and finance training for personnel and farmers,
office construction and the purchasing of equipment.
    Both loans are for 15 years, including three years of
grace, with a variable interest rate, currently 7.92 per cent,
which is linked to the bank's cost of borrowing funds.
 Reuter
