Bailout plan for cash-strapped Mexican construction companies

With a view to bail out roughly a third of Mexico’s financially troubled building companies that have been forced to mothball their works, the Mexican Chamber of Construction Industry (CMIC) will open a rescue fund beginning in February.

The Chamber’s chairman Eriberto Arguello Figueroa warned that 60 of the 200 construction companies affiliated to the entity are mired in dire straits, while the rest is faring a whole lot better.

Those businesses applying for help will get the requested resources in 24 hours without further consultations with the credit desk in an effort to make the process as snappy as it gets.

The Department of Economy and the CMIC signed an agreement in December to put together a bailout plan for building companies. The plan is to be bankrolled through equal shares of 1.5 million pesos apiece.

Even though entrepreneurs filed their papers at the bank last month in order to open a credit line of 3 million pesos, no loan will be earmarked until the month of February.

Though banking operations will be initially conducted without exceeding the aforesaid figure, that amount of money aimed at helping construction firms is expected to grow.

Financial resources will be handled by a civil trusteeship called Quintana Roo Building Industrials (INDELAGROO) formed by the CMIC acting committee with the objective of preventing loans from going into bad checks and warding off potential bankruptcy.