Nov. 22 (Bloomberg) -- Mexico’s government will guarantee up to 20,000 mortgage loans next year for untaxed or informal workers, President Felipe Calderon said today.
Workers in Mexico’s informal sector, including some taxi drivers, waiters, farmers and others will have access to government-backed credit for the first time, Calderon said. The new program will also offer up to 200,000 guarantees for loans for home renovation and remodeling, he said.
“From now on they will be able to have property that will give them stability in the present and confidence in the future,” he said at an event in the presidential palace.
Sociedad Hipotecaria Federal, a government-run mortgage agency, and the federal housing agency known as Conavi will provide the guarantees, he said.
So-called informal workers, who include those not registered with the country’s social security institute, reached 13.4 million in the third quarter, according to the national statistics institute. This represents 29 percent of Mexico’s working population.
Calderon also announced the expansion of a program for workers registered with the social security institute that would grant 3.1 billion pesos in credit to help them remodel their homes. The local units of Citigroup Inc. and Banco Bilbao Vizcaya Argentaria SA as well as Banca Mifel SA, ABC Capital SA and Holding Monex SAPIB are participating in the program.
--Editors: Jose Enrique Arrioja, Jonathan Roeder
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