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.