Mexico - Second Agricultural Marketing Project

Document of The World Bank FOR OFFICIAL USE ONLY ZA/ 31"6/X_ - Report No.P-5157-ME MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT EQUIVALENT TO US$100.0 MILLION TO NACIONAL FINANCIERA, S.N.C. WITH THE GUARANTEE OF THE UNITED MEXICAN STATES FOR THE SECOND AGRICULTURAL MARKETING PROJECT NOVEMBER 14, 1989 This document has a restricted distribution and may be used by recipients only in the performance of their ofricial duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY AND EOUIVALENT UNTITS US$1.00 Mex$ 26001 Mex$ 1 = US$ 0.00044 WEIGHTS AND MEASUREMENTS 1 Hectare (ha) = 10,000 m2 1 Metric ton (mt) 1,000 kg 1 Kilometer = 1,000 m GLOSSARY OF ACRONYMS ACF - Average Cost of Funds to Banks AGSAL - Agricultural Sector Loan CETES - Treasury Bills CONASUPO - National Marketing Corporation for Basic Foods FI - Financial Intermediary FICART - Trust Fund for Credit in Irrigated and Rainfed Areas FIDEC - Trust Fund for Commercial Development FIRA - Agricultural Trust Funds in Bank of Mexico FSAL - Financial Sector Adjustment Loan GIRA - General Interest Rate Agreement NAFIN - National Finance Agency SNIM - National Market Information Service FISCAL YEAR January 1 - December 31 1/ Average exchange rate at the time of the appraisal (May 1988) was 2280 Mexican pesos per U.S. dollar.  FOR OFFICIAL USE ONLY MEXICO SECOND AGRICULTURAL MARKETING PROJECT LOAN AND PROJECT SUMMARY Borrower: Nacional Financiera, S.N.C. (NAFIN) Guarantor: United Mexican States Beneficiaries: The Trust Fund for Commercial Development (FIDEC), private sector enterprises through commercial banks, and the National Marketing Information Service (SNIM). Amount: US$100 million equivalent Terms: Seventeen years, including five years of grace, at the standard variable interest rate. Relending Terms: Ta'e Borrower would transfer US$100,000 to SNIM as a grant; the balance of the loan amount would be made available to FIDEC, of which US$98.6 million would be on-lent to private enterprises through commercial banks. Subloans would be denominated in Mexican pesos or U.S. dollars at the option of the sub-borrower. For loans in pesos, the Borrower would make the funds available to FIDEC in pesos at the one month CETES (Mexican Treasury Bills) rate, which represents the marginal cost of funds to the Government, or at any other reference rate mutually agreed between the Borrower and the Bank; FIDEC would repay principal and interest with the same terms and grace periods as the Bank loan. The Government would take the foreign exchange risk on the loan. The CETES rate, being a market based rate in in open capital market, includes a foreign exchange risk component. For loans denominated in U.S. dollars, the Borrower would make funds available to FIDEC at the three-month LIBOR rate plus 0.5 percentage point. FIDEC would on-lend the funds to commercial banks either in Mexican pesos or U.S. dollars at a weighted average interest rate to provide FIDEC a margin of at least 2.0 percentage points over FIDEC's weighted average cost of funds (either in Mexican pesos or in U.S. dollars, respectively). These banks would relend the funds to sub- borrowers at rates established in the General Interest Rate Agreement between Mexico and the Bank (peso subloans) and at a rate equal to LIBOR plus 4.0 percentage points (dollar subloans). Financing Plan: Local Foreign Total ---------------- US$ Million --------------- IBRD 21.1 78.9 100.0 FIDEC 24.8 0.0 24.8 Participating FIs 17.6 0.0 17.6 Sub-borrowers 35.2 0.0 35.2 Total Financing 98.7 78.9 177.6 Economic Rate of Return: Not Applicable Staff Appraisal Report No.: 8095-ME This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - 2 - MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO NACIONAL FINANCIERA, S.N.C. WITH THE GUARANTEE OF THr UNITED MEXICAN STATES FOR A SECOND AGRICULTURAL MARKETING PROJECT 1. The following memorandum and recommendation on a ptoposed loan to Nacional Financiera, S.N.C. (NAFIN) for US$100.0 million equivalent is submitted for approval. The proposed loan would be repayable in 17 years on a fixed * amortization schedule, including 5 years of grace, at the Bank's standard variable interest rate and would help finance an agricultural marketing project. 2. Background. Mexico has started to adapt its food distribution systen to the pressures of urbanization as evidenced by the presence of modern supermarkets competing with each other in nearly every city, the development of wholesale markets, and producers starting to by-pass the traditional channels by selling directly to retailers or exporting. Yet part of the marketing sector continues to operate inefficientlv: (a) there is still rudimentary packing, limited availability of cold storage, and lack of on-farm storage and specialized transport equipment, resulting in product losses and higher prices to the consumer; (b) the lack of specialized transport equipment as well as the deficiency of pre-export facilities in border cities, have restricted the development of exports; (c) the lack of markets in medium-sized cities results in additional transshipment of products, more intermediation and higher prices to the consumer; (d) at the retail level, there remains a large number of traditional corner stores with high unit operating costs; in Mexico City, modernization of retail has been slowed down because of complicated licensing procedures to open new stores; (e) market information has progressed, but the National Market Information Service (SNIM) does need to cover other important subsectors such as fish and meat; and (f) there remains a lack of long-term funds because at the present time, most of commercial bank resources are short term. 3. During the last five years the Government has been opening up the economy and liberalizing the trade regime and very recently has taken major steps to reform the financial system in Mexico by liberalizing interest rates and removing most forced lending. The Agricultural Sector Reform has been uneven. In basic grains and oilseeds the Government is committed to bring prices in line with international prices. However, much of the marketing and storage of these commodities are still handled by CONASUPO and are subject to trade restrictions, mainly quotas. Further reform in this area will be addressed under AGSAL II now under preparation. In the distribution of perishable food products, the Government has promoted private sector investment in commercial infrastructure through fiscal incentives, technical assistance, creation of a national market information service and provision of credit to the private sector. This effort was supported by the Bank through the Agricultural Marketing Project for Perishables (2262-ME), which has contributed US$115 million to the development of the sector and has helped develop FIDEC as a trust fund specialized in the financing of marketing projects. 4. The achievements of the first project are positive. The project has contributed to the modernization of marketing infrastructure through the financing of 300 transport units, 80 medium-sized supermarkets, 11 wholesale and retail markets, 55 self-service stores, 2300 shops, 2000 warehouses, and 80 cold  storage facilities. The creation of the National Market Information Service has helped improve the transpa:ency of transactions in perishable products. In addition, the project helped to introduce new technologies and new methods of management. The project also increased vertical integration and improved competitior.. Finally, it had a positive environmental impact as new markets and stores have a better sanitation than the old ones they have replaced. The total amount was committed in 5.5 years and the loan is being closed in 6 years. 5. Yet, there is further need for the improvement of FIDEC's operations so that it can provide better technical assistance to commercial banks in project appraisal. The Government's strategy is that FIDEC (a) develop a wider vision of the food distribution system; (b) improve its mix of staff and upgrade its skills; and (c) improve its monitoring and evaluation system. These institutional deficiencies would be addressed under the proposed project. The Government also intends (a) to transform FIDEC into principally a long-term funding institution during a transitional period when long-term funds are not yet available from financial markets, and (b) to redefine FIDEC's future when long-term financial markets re-emerge and private marketing companies can easily have access to long-term financing. 6. Rationale for Bank Involvement. The proposed project would consolidate the progress achieved under the first Agricultural Marketing Project by providing credit to continue to modernize the food marketing system throughout the marketing chain from agroprocessors to consumers and increase private sector participation in food distribution. The project would strengthen FIDEC in areas where institutional weaknesses have been identified. It would also improve the transparency of food commercial transactions through (a) an extension of the National Marketing Information Service and (b) a study on the iasue of licenses to open modern retail stores in Mexico City. 7. The project is a transitional step and fits well within the context of progress on broader financial sector reforms supported by the bank under the Financial Sector Adjustment Loan (FSAL). FIDEC, the trust fund of the Bank of Mexico, with specialized knowledge and experience in marketing projects, will have an important role to play until long-term ftnancing is adequately provided by financial markets. In addition, FIDEC plays an important role in providing technical assistance to the commercial banks to promote investments to bring about efficiency improvements in this highly specialized sector. This technical expertise would be transferred gradually to the private sector. First, the roles of related development funds would be redefined as recommended under the FSAL. FIDEC would continue to be the main source of channeling long-term financial resources for agricultural marketing development. During the last five years FIDEC, and to a smaller extent FIRA and FICART, played a major role in financing the modernization of the perishable marketing sector in Mexico. Under the proposed project, resources would be channelled through only one trust fund (FIDEC) instead of three; therefore, overlapping trust fund responsibilities would be eliminated. Moreover, to help FIDEC to turn principally into a long-term financial institution, 80% of proposed loan funds would be channeled to long-term loans with only the balance of 20% to be used to finance short-term loans. FIDEC is currently one of the financially healthier trust funds of the Government, well capitalized under the Agricultural Marketing for Perishables Project and having done more than 95% of its rediscounting operations at rediscount rates above the average cost of funds (ACF) to the banking system. FIDEC is already committed to emphasizing long-term lending; the share of long-term loans on FIDEC's overall portfolio has increased from 20%  - 4 - In December 1988 to juat over 40% by October 1989, surpassing our projectet change for Dectnmbor 1989. Second, the proposed project would help tIDgC to eliminate interest nubsidiea. In addition, under the proposed project, FIDEC, would be borrowing the loan funds from the Government at market rates (CETES) and would repay the loan over the same term and grace period as the Bank loan to NAFIN, inutead of receiving the loan funds as capital contribution by the Government. 8. Proet Obectives. The main project objectives would be tot (a) improvc the welfare of consumers, producers, exporters and tr&ders by reducing losses, improving product quality, and handling more products per unit of floorspace in wholesale and retail, which would result in lower prices for consuni;urs anti increased revenues for producers, exporters and traders, (b) improve the transparency of the system and thus competition through a better dissemination of information on prices and volumes of products traded, (c) consolidate the institutional development of FIDEC within the context of the restructuring of the financial sector in Mexico and the redefinition of roles of trust funds and development banks. 9. Project Description. Project components would includes (a) a general line of credit to help agroprocessors, wholesalers, and retailers modernize their marketing operations through investment in specialized packing, transport, storage and warehouse equipment, creation of new wholesale and retail markets, and modernization of retail stores (99% of total project cost); and (b) institutional development of FIDEC and participating co=mercial banks, further development of the National Market Information System (SNIM), and technical assistance to retailers and producers, and market-related studies including an auction system for selected wholesale markets (1% of total project cost). The Bank loan would finance US$100.0 million or 56% of total project cost (US$177.6 million, as shown in Schedule A). Foreign exchange would represent 35% of total project c)st. Retroactive financing of up to US$10.0 million is recommended for expenditures incurred during the twelve months from the expected loan signing date. A description of the proposed procurement arrangements and the disbursement schedule is presented in Schedule B. A timetable of key project processing events and the status of Bank group operations in Mexico are given in Schedules C and D, respectively. The Staff Appraisal Report, No. 8095-ME, dated November 14, 1989 is also attached. 10. The project would be implemented by FIDEC. Credit would be channelled through the commercial banks which would on-lend to the sub-borrowers at terms consistent with those of the General Interest Rate Agreement (GIRA) for peso- denominated subloans and at LIBOR plus at least 4 percentagc points for dollar- denominated subloans. FIDEC would also be responsible for the institutional development component with the help of technical assistsnce from consultants. FIDEC's rules of operation have been recently modified and are considered adequate. FIDEC's staff skills would be improved t-nder the institutional component of the proposed project. In addition, commercial banks' creditworthiness anas ysis relative to project appraisal will be enhanced so that FIDEC can delegate more project evaluation responsibility to commercial banks. SNIM would be responsible for further development of the national market information service and would receive US$100,000 for computer equipment from NAFIN as a grant. 11. Agreed Actions. During negotiations assurances were obtained from the Government that: (a) interest rates and intermediation margins would be set up in such a way that they would provide FIDEC with a margin of at least 2.0  percentage points over FIDEC's cost of funds for either peso-denominated subloans or U.S. dollar-denominated subloans, (b) interest rate to final beneficiaries would be in accordance with GIRA, (c) FIDEC would carry out a study to review the regulatory aspects affecting the food retail sector in Mexico City, and a study on the feasibility of introducing an auction system in selected wholesale markets, (d) FIDEC would create a high-level position reporting to the Director General of FIDEC to implement the institutional component of the project, and (e) FIDEC's long-term goal would be redefined in accordance with the liberalization of the financial sector as required under FSAL. 12. Conditions of loan effectiveness would be (a) that the terms of reference for a study to review the regulatory aspects in the food retail sector in Mexico would have been agreed with the Bank, and (b) that the Borrower has entered into contractual arrangements satisfactory to the Bank with the Guarantor and Bank of Mexico, FIDEC and SNIM concerning the flow of loan funds. 13. Benefits. The principal benefits of the project would be reduction in marketing costs, improvement in quality and distribution of food products, and less congested urban markets would increase the real income of producers, merchants and consumers. The project would also help develop exports and create at least 20,000 new jobs. Investment subprojects are expected to yield financial rates of return ranging between 17 and 44%. 14. Risks. The principal project risk would be a possible contraction of credit demand due to currently high real interest rates; although these rates are still quite high, they decreased by over 20 percentage points during the last few months after a tentative agreement was reached on Mexico's external debt reduction. In addition, the external debt reduction agreement, expected soon between Mexico and its commercial creditors, would have a beneficial impact on Mexico's fiscal situation and renew Mexico's confidence in its future economic st~bility. This, in turn, is expected to bring about further decreases in real interest rate and a gradual restoration of growth. Moreover, the Government's commitment to open up the economy through structural adjustments in the agricultural, industrial, and financial sectors mitigates the possible risk of contraction of demand as these adjustments are already inducing substantial private sector investment. 15. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve the proposed loan. Barber Conable President Attachments Washington, D.C. November 14, 1989  -6- Schedule A MEXICO SECOND ACRICULTURAL MARKETING PROJECT ESTIMATED COSTS AND FINANCING PLAN Estimated Cost: Local Foreign Total ---------------- US$ Million --------------- General Line of Credit 98.6 77.5 176.1 Institutional Support 0.1 1.4 1.5 Tctal Project Cost 98.7 78.9 177.6 Financing Plans Local Foreign Total ---------------- USS Million --------------- IBRD 21.1 78.9 100.0 FIDEC 24.8 0.0 24.8 Participating FIs 17.6 0.0 17.6 Sub-borrowers 35.2 0.0 35.2 Total Financing 98.7 78.9 177.6  -7- Schedule B MEXICO SECOND AGRICULTURAL MARKETING PROJECT PROCUREMENT AND DISBURSEMENTS Procurement Public Expenditure Established International ICB Total commercial Shopping Cost practices acceptable to the Bank -------------------- US$ Million ---------------- Credit Component 100.1 56.0 20.0 176.1 a/ (62.6) (24.0) (12.0) (98.6)b/ Consultants for 1.15 -.- -.- 1.15 Technical Assistance, (1.05) . . (1.05) Training and Studies Equipment for SNIM 0.35 _.- _. 0.35 (0.35) _ - . (0.35) Total 101.6 56.0 20.0 177.6 c/ (64.0) (24.0k (2.0) (100.0) Disbursements Amount Category (US$ Million) Disbursement Percentages Subloans for investment 79.0 80% of the loan amounts Subloans for working capital 19.6 rediscounted by FIDEC Technical Assistance, 1.05 100% Training and Studies Equipment for FIDEC 0.25 80% of the eligible local expenditures or 100% of foreign exchange expenditures Equipment for SNIM 0.10 P0% of the eligible local expenditures or 100% of foreign exchange expenditures Total 100.00 Estimated Disbursements Bank FY 1990 1991 1992 1993 1994 ------------ US$ Million ----------- Annual 26.3c/ 17.1 18.0 18.8 19.8 Cumulative 26.3 43.4 61.4 80.2 100.0 a/ estimates based on FIDEC's experience and demand forcasts b/ amounts to be financed with the Bank loan proceeds c/ includes up to US$10.0 million of retroactive financing  -8- Schedule C MEXICO SECOND AGRICULTURAL MARKETING PROJECT TIMETABLE FOR KEY PROJECT PROCESSING EVENTS (a) Time to prepare: 1.5 years (b) Prepared by: FIDEC with Bank assistance (c) First Bank Mission: March 1988 (d) Appraisal Mission Departure: April 17, 1989 (e) Negotiations: October 30, 1989 (f) Planned Date of Effectiveness: January 15, 1990 (g) List of Relevant PCRss PCR of First Agricultuz.rl Marketing Project (white cover)  _9 Schodule D STATUS OF SANK GORU OPVERATIONS IN MgXICO I/ Pegh 1 u f 2 A. Stotemnt of Bonk Loans As of September 80, 1903 (US$ million) Flocal Am,unt loee Undiel. Loon No. yeat Borrower Purposoe Cancellotions buried 79 loasn ftuliy diobursed 5 9J 60 1700-5 1979 NAFIN Irrloation 61.60 15.14 1t65-8 1960 NAFIN Irrigation 04.40 14.36 2202 1968 NAFIN Agricultural Marketinge 116.00 1.07 2261 1968 SANOSRAS Third Water Supply 100.8O 21.10 2825 1968 NAPIN Third Sm/Med Industry 176.00 0.18 2381 1938 BANCOMEXT Export Developmet 560.00 2.53 2426 1964 SANOBRAS Highways 200.00 14.52 2450 1964 BANPESCA Portus 0.0 16.11I 2526 1965 NAFIN Chiapos Agric. Dew. 16.00 41.21 2646 1906 NAFIN Sm/Med Scale Mining It 10$.00 2J.9 2569 1965 NAFIN Vocational Education @1.00 17.16 2675 1986 SANOBRAS Rollwsys V 100.00 142.62 2012 1980 SANOSRAS Low Income Housing I 150.00 16.60 2658 19le NAFIN Proderith I2 66.80 71.16 2005 196 SANOBRAS Earthquoat Rohob 400.00 20.690 2000 1966 OANOBRAS Municipal Strongthening 40.00 80.81 2069 1960 SANOUNAS Solid Waste Pilot 26.00 19.07 2745 1961 8ANCOMiXT Trade Policy Loon I E00.00 10.38 2740 1937 NAFIN Induntrial Recovery 150.09 27.60 2747 1907 NAFIN Technology Development 43.00 82.46 2777 1987 SANCOMEXT Export Dovelopment 22 260.00 22.98 2924 1967 BANOSRAS Urbon Transport 121.00 98.16 2887 1967 NAFIN Agricultural Credit 400.00 12.86 26e5 3/ 0967 NAFIN Sm/Med Industries IV 100.00 100.00 2869 1987 NAFIN Agricultural Extension 20.00 16.96 2876 1987 BANOiRAS Highway Maintenance 138.00 125.00 2676 19go NAFIN Manpower Training 80.00 66.26 2916 1988 NAFIN Steel Sector Reetruct. 400.00 UC5.42 2916 1988 NAFIN Agricultural Sector Loon 300.00 201.99 2919 3/ 1968 NAFIN Fertilizer Sector Loon 265.00 265.00 2940 J/ 1986 9ANOiRAS Ports Rehabilitation 50.00 50.00 2947 3/ 1988 BANOBRAS 4ousinj Finance 800.00 800.00 3047 3/ 1989 NAFIN Industrial Restructuring 250.00 250.00 3083 3/ 1909 NAFIN Hydroelectric Development 400.00 400.00 3006 1989 BANCOWIEXT Financial Sector Loan 500.00 250.00 30a0 1989 NAFIN Public Ent.rp Reotruct 500.00 260.16 3067 1969 NAFIN Industrial Sector Polley 600.00 263527 3101 3/ 1909 BANOSRAS Water, Women a Dev 20.00 20.00 3116 3/ 1990 NAFIN Forestry Development 45.50 45.60 _________...... _--- ------ Total 13 726.20 Of which hbe been repaid 8,3536.0 Total now outstanding 10 369.J7 Amount sold 92.34 Of which has been repaid: 92.34 0.00 Total now held by Bank 2/ 10,369.37 Total undisbursed 3,765590 1/ The status of the projects listed in Part A is in a seperete report on all Sank/IDA finnnced projects in execution, which is updated twiee yeorly and circulated to the Executive Directors on April 30 and October 31. 2/ Prior to exchange sdjustment. 3/ Not yet effective. EBArevnlo:LA2CO Oisk:Stst.ment of Bank Group Operations Fi le:MXC-09:A9O.M 17 October 30, 1989  - 10 - Schedule D MEXICO Page Z of T2 S. Statemnt of IFC Investments As of September 30, 1969 (USS Million) Fiscal ____-Original Approval*--------- Year Obligor Type of Business Loon Equity Total 1968/69 Industries Perfect Circle, S.A. /a Industrisl Equipment 0.80 0.00 0.80 1968 Bristol de Mexico, S.A. /a Aircraft Engine overhaul 0.60 0.00 0.60 1961 Aceros Soler, S.A. /a Twist Drills 0.30 0.00 0.30 1962/6/6/9 Fundidora Monterrey, SA. /a Steel 2.30 21.40 23.70 1963 Tuboo de Acero do Mexico Stainless Steel Pipes 0.90 0.10 1.00 1968 Quimica del R-y, S.A. /a Sodium Sulphate 0.70 0.00 0.70 1904/86 Industris del Hierro, S.A. Construction Equipment 0.00 2.00 2.00 1970 Minera del Nort- /a Iron Ore Mining 1.60 0.00 1.60 1971 Celsnes Mexicans, S.A. /a Textilee 12.00 0.00 12.00 1912 Promotora Papel Periodicos, S.A. de C.V. /a Pulp and Paper 0.00 /b /b 1973/79 Ceentos Veracruz, S.A. Cment 15.90 0.00 16.90 1974/01 Csncun Aristos Hotel Tourism 1.00 0.30 1.30 1976/79 Mexinox, S. A. Stainless Steel 12.00 3.20 16.20 197S/81/83 Papeles Ponderosa, SA. Pulp and Paper 10.70 6.00 16.70 1976 Tereftalatos MexicaSos, S.A. Petrochemical 19.00 0.00 19.00 1979/61/66 Hotel Camino Real Ixtops, S.A. Tourism 0.00 4.20 4.20 1979/88 Empress* Tolteca, S.A. Cement 166.00 7.90 176.90 1979 Conductores Monterrey, S.A. Electrical Wire A Cable 18.00 0.00 16.00 1980 Industrise Resistol, S.A. Particle 8oard 26.00 0.00 26.00 1900 Vidrio Plano de Maxico, S.A. Flat Glass 114.90 0.00 114.90 1980 MiAers Real do Angeles, S.A. Mining 110.00 0.00 110.00 1980 Corporscion Agro- industriol S.A. Agri-Business 11.30 3.00 14.30 1981/86 Celulosicos Contauro, S.A. Pulp and Paper 59.60 0.00 69.60 1983 Capital Goods Facility /a Capital Goods Financing 100.00 0.00 100.00 1984/87 Metals., S. A. Auto Chosis 8.00 1.40 9.40 1984 Proteison, S.A. de C.V. Agri-Business 2.00 0.80 2.60 1984 Promociones Industrialeo Mexicanas, S.A. de C.V. Petrochemical 16.40 0.00 16.40 1986/86 Celulosa y Papel de Durango, S.A. de C.V. Pulp and Paper 10.00 3.10 13.10 1986 Agromex Phsse I (AESA) Veg and Fruit Processing 1.60 0.60 2.00 1987 Industrias Sulfex, S.A. de C.V. Chemical A Petrochemical 2.00 0.60 2.50 1967 Seoed Power de Mexico Auto Assembly 9.00 0.00 9.00 1987 Crescent Market Aggregates Construction Material 37.00 0.00 37.00 1988 Spasco, S.A. de C.V. Cement 46.00 0.00 46.00 1988 Solumi, S.A. de C.V. Food and Food Processing 20.30 2.00 22.30 1988 Polimar (ABS), A.S. do C.V. Petrochemical 14.50 0.00 14.50 1989 Grupo Femsa/Visa Consumer Goods Conglamorat 80.00 27.60 107.60 1989 8anca Sorfin Development Finance 60.00 0.00 60.00 1989 Cementos Mexicano* Cemnt & Const Materials 68.00 0.00 88.00 Gross Total Commitments 1059.00 83.00 1142.00 Less Cancellations, Terminations, Repayments and Sales 745.90 37.80 783.70 Total Commitments Now Held by IFC 313.10 45.20 368.30 Total Undisbursed (Including Porticipants) 94.05 0.08 94.13 /a Investments which have been fully cancelled, terminated, written off, sold, or repaid. /b US326,000. EBArevalo:LA2CO IFC Investment:MXC89.WK1 October 30, 1989