World Bank lends Mexico $300 mn to counter fiscal risks

March 23rd, 2012 - 2:28 pm ICT by IANS  

Mexico City, March 23 (IANS) The World Bank has announced a $300 million loan to Mexico to shield it from fiscal risks.

The loan seeks “a more effective implementation of public spending in the country and greater budget stability, transparency, disaster risk management and sub-national level debt management”, the World Bank said in a statement Thursday.

“We recognize Mexico’s efforts in implementing fiscal risk management policies, which have allowed it to successfully confront external shocks, reduce the impact of global economic and financial volatility and respond appropriately to the country’s social and economic priorities,” said Gloria M. Grandolini, World Bank Director for Mexico and Colombia.

“In this way, the comprehensive approach proposed by Mexico will safeguard its programmed public spending,” Xinhua quoted her as saying.

The bank said the program contemplates three major areas: improving budget transparency and stability, maximizing the government’s capacity to respond to shocks produced by natural disasters and improving the regulatory framework for debt issuance at the subnational level.

“The program constitutes a central part of the WB’s commitment with the country’s economic development. It seeks to foster sustained, inclusive and rapid growth with a strong focus on protecting the most vulnerable population,” the WB said.

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