Mexico takes out $1 billion loan from World Bank

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.

Mexico has not passed any legislation to assist those unemployed by the government's order to close businesses during the coronavirus pandemic, and has refused calls to consider economic stimulus. Mexico does not have an unemployment insurance system and the Government owned electric company has disconnected services in over 500,000 households for non-payment during the pandemic.