Mexico offers 2 bln pesos in loans to help homebuilders

MEXICO CITY, June 23 Sun Jun 23, 2013 11:24am EDT

MEXICO CITY, June 23 (Reuters) - A unit of Mexico's development bank said on Sunday it will team up with credit unions to offer up to 2 billion pesos ($149.52 million) in loans to small and medium-sized homebuilders.

The announcement came as Mexico's three largest homebuilders, Geo, Urbi and Homex , were looking to restructure debt after sales of their homes slowed in recent years.

Mexico's Federal Mortgage Society said it was in the process of approving 15 credit unions to access its funding lines.

The loans will go to homebuilders that are developing homes under the government's new housing policy, which prioritizes vertical developments close to urban centers, the statement said.

Geo, Homex and Urbi took on heavy debt to buy up large swathes of land for housing projects outside of major cities.

Their suburban developments have fallen out of favor in recent years, hurting home sales, as Mexicans are increasingly choosing to live closer to offices and schools.

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Comments (3)
elzorro83 wrote:
Two Billion Pesos..?? That is like $50 dollars..!!
What kind of help is that…?

Jun 23, 2013 1:08pm EDT  --  Report as abuse
locogringo wrote:
of course they want to support the urban dwellers and ignor all the rest. the people in the urban ares are the only ones that can find some form of work and if lucky they will earn $100.00 a week. but for the people that are forced to move to the urban ares most likely will never be able to live in one of these news facilities, as those people will only earn about $40.00 a week.

Jun 23, 2013 2:25pm EDT  --  Report as abuse
locogringo wrote:
elzorro83 – two billion pasos is like two million U.S. dollars.

Jun 23, 2013 2:27pm EDT  --  Report as abuse
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