The Inter-American Bank for Development (IBD) has authorized a second loan of $500 million to the Federal Mortgage Society (SHF) of Mexico, aimed at boosting liquidity in the country's mortgage markets.
The SHF will receive US$500 million to help promote efficient mortgage markets within the country and extend credit lines to authorized intermediaries to maintain financial liquidity in the secondary markets through the purchase of mortgage-backed bonds.
Back in November of 2008, Mexico received a conditional credit line from IBD for US$2.5 billion for investment projects and was awarded $500 million at that time.
The SHF estimates that in 2009 more than a million families will apply for mortgages as in Mexico there is a housing deficit of nine million units.
Mr. Ellis Juan, a representative from the IBD in Mexico, said that this loan will help satisfy the demand for housing and indirectly help the construction industry recuperate.
On the other hand, the Mexican government announced at the end of July a cut in public expenditure for Peso 50 billion, and this week they announced the suspension of several highway projects, which were part of the plan to face the global economic crisis.