Mexico's largest financial group BBVA Bancomer at a Wednesday press conference unveiled a program to issue 6bn pesos (US$526m) in small business loans through October 2005 in partnership with the economy ministry.
Up to 23,000 small-and medium-sized enterprises (SMEs) could benefit from the agreement thanks to loan guarantees offered by the economy ministry to substitute asset-backed collateral frequently required by banks lending to this sector.
"The lack of guarantees was one of the central reasons that held up credit (to SMEs). The deal with the economy ministry has been a valuable help that has allowed BBVA Bancomer to develop a specific credit offer without physical guarantees for businesses and business people," Bancomer CEO Jaime Guardiola said in a statement.
The loans will be made through the bank's Tarjeta Negocio Bancomer credit card, which offers users a credit line of up to 75,000 pesos.
