Mexican banks, determined to avoid a return to past woes, are reining in lending to the country's indebted state governments, some of whose leaders have recently become the focus of corruption allegations.
The drop in bank lending to the states this year has been the sharpest since the 2007-2009 financial crisis, and coincides with a jump in liabilities in several states in the past five years.
In the first half of 2016, commercial banks agreed 11 loans to local and state governments worth 8.471 billion pesos ($451 million), less than half the sum from the same period . . .
This independent news site is supported by subscribers.
Login now, or subscribe today. As a premium subscriber to our independent news site, for as low as .10 cents per day, you'll unlock full news coverage of the events that shape our city, exclusive interviews with local influencers, and in-depth reports that get to the heart of Puerto Vallarta's unique challenges and triumphs, while also learning more about news throughout Mexico that makes a difference. Help us sustain the future of independent journalism in Puerto Vallarta. It's a small market so advertising doesn't make a dent in the costs, but you can help! Subscribe today and become an essential part of the conversation.