The Inter-American Development Bank (IADB) has announced a loan of $245 million this year to financially pressed Mexico.
IADB President Antonio Ortiz Mena and Mexican Finance Minister Jesus Silva Herzog signed documents Saturday in Mexico City for five loans to back industrial projects and municipal development programs.
The loan announcement came ahead of the three-day annual IADB governors' conference opening today in Mexico City with the participation of more than 32 Latin American finance ministers and central bank directors. The IADB, owned by governments from 25 Latin American and 18 Western industrialist countries, has loaned Mexico a total of $2.9 billion in the last 22 years, disbursing $320 million in loans last year.
To maintain its cordial relations with the IADB and other multilateral lending institutions, Mexico has fulfilled all capital repayment schedules to these agencies, financial analysts said.
In contrast, the country last August suspended capital repayments to private foreign banks that hold most of the country's $80 billion foreign debt.
Meanwhile, in Brussels, French Finance Minister Jacques Delors gave notice yesterday that France would seek a large new loan from the European Community, diplomats said.
He told fellow finance ministers of the 10-nation Common Market that the loan will be requested under the community's oil facility, they added.
France is entitled to claim up to $6 billion under the facility.
The diplomats said Delors indicated the figure requested would be high, but it would not cover the whole French entitlement.
The French Government last year raised a $4 billion loan on the international capital markets to finance its massive balance of payments deficit.
Reports of a separate large loan from Saudi Arabia for the same purpose before the end of last year were not confirmed.
Recent agreements by international lending and financial institutions: World Bank
* A $6.1 million loan and a $14 million credit to strengthen economic cooperation in six countries in West Africa. The countries included are Benin, Niger, Togo, Senegal, Ivory Coast and Upper Volta.
* A $101 million credit to India for an irrigation project to improve farm production.
* An $81.2 million loan to Egypt to help small and medium sized agro-industries with financing.
* A $34 million credit to Malawi for training secondary school teachers, students and accountants.
* A borrowing of $400 million in aggregate principal amount of securities, consisting of $250 million 10 3/8 percent five-year notes due March 15, 1988, and $150 million 10.90 percent 10-year notes due March 15, 1993.
* A subscription agreement for a public offering of approximately $85 million in bonds. The 8 percent 10-year bonds are priced at 99.75 percent and will result in a yield to investors of 8.04 percent.
Inter-American Development Bank
* A $4.41 million technical cooperation grant to improve the tax administration systems in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua.
* An $850,000 technical cooperation grant to Panama to assist in primary health care training and delivery.
* A $1.5 million technical cooperation grant to Panama to establish a permanant system of geographic information using remote sensors.
* A $1.8 million technical cooperation grant to Panama for a feasibility study for a geothermal complex.
* Two loans totaling $22.5 million to Brazil to help finance agricultural research.
* A $15 million loan to Panama to help finance a credit program to stimulate investment in small and medium-scaled industry.
* A $60 million loan to Panama to help complete construction of a hydroelectric project.
* A $10 million loan to Jamaica to improve small farm development.
International Monatary Fund
* Two purchases totaling the equivalent of 113 million special drawing rights by the government of Malaysia under the buffer stock financing facility.