Private Equity and IDB Invest, will support MSMEs with loans for $12 billion dollars

The Mexican Business Council and IDB Invest, a member of the IDB Group that finances sustainable companies and projects, announced an agreement to facilitate the financing of productive chains and support micro, small and medium enterprises in the country, which provides resources of up to $12 billion. The credit product, revolving and with an average term of 90 days, will finance an estimated amount of up to $12 billion dollars a year or about $290 billion pesos in invoices from 30,000 suppliers of micro and SMEs in Mexico. Provisions can be made in both pesos and dollars, according to the needs of each accredited company. According to a statement, the goal of IAD Invest is to build a program of $3 billion dollars in credit lines in reverse factoring mode, to complement the lines of such programs that the financial institution already has in Mexico.

The CMN said that in Mexico there are about 4.1 million MSMEs in Mexico that contribute 42% of Gross Domestic Product and generate 78% of employment in the country, but only 23% obtain financing from commercial banks, which represents one of the main constraints to their expansion and survival.

Source: Forbes México

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