Mexico takes out $1 billion loan from World Bank: newspaper

FILE PHOTO: A participant stands near a logo of World Bank at the International Monetary Fund - World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018. REUTERS/Johannes P. Christo

MEXICO CITY (Reuters) - Mexico has taken out a $1 billion loan from the World Bank as the effects of the coronavirus begin to squeeze the economy, a business newspaper reported on Sunday.

El Economista said the Mexican government asked the World Bank for the loan on May 19 to deal with the impact of the pandemic, and got the green light from the international lender on May 31.

Deputy Finance Minister Gabriel Yorio said on Twitter that the loan had not been contracted for any specific purpose.

The development policy loan (DPL) is for the government’s general funding needs and fell within the debt limits already approved by Mexico’s Congress, he said.

Reporting by Dave Graham and Noe Torres; Editing by Peter Cooney