Announcement of Mexico and World Bank Signed Two Hundred Fifty Million US Dollars Loan for Export Development on March 18, 1987

FOR IMMEDIATE RELEASE 'NorldBank 1818 H Street, NW., Washington, D.C 20433, US.A. BANK NEWS RELEASE NO. 87/S20 Contact: Ciro Gamarra (202) 477-5320 MEXICO AND WORLD BANK SIGNED $250 MILLION LOAN FOR EXPORT DEVELOPMENT WASHINGTON, March 18 -- The Government of Mexico and the World Bank signed today the agreements for a $250 million loan to help increase and diversify the country's non-oil exports. The loan, approved last January, is an essential part of World Bank assistance to Mexico's program of structural reforms. At a meeting with Mexico's Finance Minister, Mr. Gustavo Petricioli, Mr. Barber B. Conable, President of the World Bank, expressed full support to the Mexican efforts to improve the efficiency and competitiveness of the Mexican economy. The meeting took place at 11:30 a.m., shortly before the loan signing ceremony at the Bank's headquarters. The loan documents were signed by Mr. Petricioli on behalf of the Mexican Government; by Mr. Alfredo Philips Olmedo, Director General of Banco Nacional de Comercio, the borrowing agency; and by Mr. Rainer B. Steckhan, Acting Vice President for Latin America and the Caribbean Region, for the World Bank. During the ceremony, Mr. Steckhan said that the development of non-oil exports complements the trade liberalization program and other adjust;nent measures adopted by the Government to put the Mexican economy back in the path of sustained growth. "Export industries tend to create employment for large numbers of workers and as a development institution the World Bank favors employment creation and policy alleviation." "Mexico has made excellent progress in its efforts to expand non-oil exports," said Mr. Steckhan. He added that a flexible exchange policy and a more open trade regime, have created better conditions for the sustained expansion and diversification of Mexican sales in foreign markets. He also emphasized the significance of the multi-year financial package of the commercial banks and of the international financial institutions for Mexico. "With the availability of more foreign exchange, the government will be able to focus its attention fully on managing the ongoing process of structural change so as to create favorable conditions for sustained economic expansion," he explained. Mr. Steckhan finally said that the loan signed today will complement the efforts of the international banking community and will support the programs and new mechanisms that the government is putting in practice to benefit the Mexican exporters. NOTE: Money figures are expressed in U.S. dollar equivalents.