Mexican leasing association AMAF will ask congress in the next legislative session to change the legal status of its members to that of special purpose finance companies, AMAF chairman Jose Alfredo Chacon told local daily El Economista.
"Financial leasing companies today are limited by the old General Law of Auxiliary Credit Organisations and Activities from 1985 which classifies this sector as pure financial leasing operators, thus cutting them off from different funding sources like bank credit and the stock market," Chacon said.
There are currently 37 special purpose finance companies (Solfoles) operating in mortgage, auto and agriculture financing. Sofoles can issue loans, but are prevented from taking deposits, which means their only sources of funding are bank loans or debt placements.
