World Bank Approves $100M Loan For Financial Consolidation and Inclusion Project in Mexico

The World Bank approved Thursday (Dec. 1) a $100 million loan for Mexico to boost the country’s credit and savings institutions and make formal financial services available to underserved sectors.

The loan will allow financial institutions, including the National Savings and Financial Services Bank, to improve their performance, widen their user base and expand their financial service packages. It would also help in providing financial education to the public, especially among the marginalized sector, and encourage them to use more formal financial services instead of going to pawnshops and loaning from individuals, which are usually more expensive.

“Access to formal financial services promotes economic and social development. Financial inclusion has always been a priority for Mexico’s development agenda. However, insufficient financial education, distrust of credit and savings institutions, as well as their limited access and lack of product and service variety, become obstacles to overcome,” World Bank Director for Mexico and Colombia Gloria Grandolini said.

The World Bank has been providing support to the Mexican government in credit and savings sector reforms since 2001. The new project, titled Financial Consolidation and Inclusion Project, will also receive funding from the country’s Treasury and Public Credit Ministry and other beneficiaries to cover the expected total cost of $209.62 million.

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About the author

  • Ravelo jennylei

    Jenny Lei Ravelo

    Jenny Lei Ravelo is a Devex Senior Reporter based in Manila. She covers global health, with a particular focus on the World Health Organization, and other development and humanitarian aid trends in Asia Pacific. Prior to Devex, she wrote for ABS-CBN, one of the largest broadcasting networks in the Philippines, and was a copy editor for various international scientific journals. She received her journalism degree from the University of Santo Tomas.