Mexico offers more and cheaper loans from banks

Mexico's government proposed a sweeping overhaul of the banking sector to make credit cheaper and more available, a move desperately needed in a country where bank loans represent less than 20 percent of GDP — one-tenth the level seen in the United States.

The plan would encourage banks to compete and lend more, create incentives for mid-size companies to list shares on the stock market, and modify bankruptcy laws to make it easier for lenders to seize debtors' assets.

Critics warned it could launch a wave of foreclosures like those seen in Spain and the United States, while supporters said it is needed to spur banks to lend to Mexico's credit-starved businesses.

Source: Associated Press