INCREASE OF 46 PERCENT IN OVERDUE DEBT RAISES SOME CONCERNS ABOUT FINANCIAL SOLVENCY OF MEXICAN BANKING SYSTEM

From: SourceMex Economic News & Analysis on Mexico | Date: June 7, 1995 | Copyright information

In late May, the Mexican Bankers Association (ABM) reported a staggering increase of 46% in the banking system's total overdue debt as of mid-May, raising concern in both Mexico and the US about the danger of bankruptcy for the Mexican banking system.

Speaking at a press conference at a meeting of the finance executives institute (Instituto Mexicano de Ejecutivos de Finanzas, IMEF) in Monterrey, ABM president Jose Madariaga Lomelin said Mexican banks had accumulated an overdue debt of almost 93 billion nuevo pesos (US$15.1 billion) as of May 12, compared with about 50 billion ...

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