Section VIII Trade and Project Financing Banking System Commercial Banks. Mexico's commercial banks are called multiple banks because they are permitted to offer a full range of services within one institution. These services range from offering deposit accounts, consumer and commercial lending, corporate finance and the operation of trusts and mutual funds to foreign exchange and money market trading. Since 1990, Mexican banks have been able to affiliate with non-bank financial institutions within a single holding company called a financial group. As of March 1994, 23 of Mexico's 34 authorized commercial banks were part of a financial group. Mexico's commercial banking sector is expanding and opening up to competition. A process of consolidation reduced the number of banks from approximately 140 in 1975 to 20 in 1992, but this trend changed in 1993. First, the Mexican authorities began to authorize the establishment of new Mexican-owned banks; a total of 14 new banks were licensed between June 1993 and March 1994. Second, the North American Free Trade Agreement (NAFTA), which went into effect on January 1, 1994, permits U.S. and Canadian banks to establish wholly-owned subsidiaries in Mexico. The first authorizations of foreign-owned banks were issued after July 31, 1994. The Mexican Government has said that as many as 60 banks may be authorized by the end of 1994. Prior to the implementation of the NAFTA, foreign bank branches and subsidiaries were not permitted to operate in Mexico. A single exception to this rule was Citibank, which, due to its longstanding presence in Mexico, was allowed to operate a branch bank subject to certain restrictions on its activities. Citibank currently has six offices, five of which are in Mexico City. Foreign banks have been allowed to operate representative offices in Mexico, however. These offices may not undertake financial intermediation but may solicit customers for their parent bank. As of March 1994, twenty-three U.S. banks had representative offices in Mexico. Mexico's commercial banks (with the exception of Citibank and Banco Obrero) were nationalized in 1982 and sold back to private investors in 1991 and 1992 for USD 12.4 billion. Mexican commercial banks have been highly profitable since then. Demand for credit and lack of competition has allowed banks to exact high margins. More recently, the need to cover the cost of a ballooning non-performing loan portfolio and to increase capital has encouraged banks to maintain these margins. Increased competition from new Mexican banks and from foreign banks is already pressuring interest rates lower, however. The Ministry of Finance is the principal regulator of the banking system. It is concerned with institutional issues such as licensing and sets credit and fiscal policies. The Bank of Mexico (the Central Bank) implements these policies and also operates interbank check clearing and compensation systems. The Bank of Mexico also manages a bank trust fund called FOBAPROA to which all commercial banks are required to contribute. The National Banking Commission, a semi-autonomous government agency, is responsible for supervision and vigilance. The Mexican Banking Association represents the interests of Mexico's banks. Mexican banks have a presence in the United States. As of December 1993, six Mexican banks had twelve agencies and majority ownership of two U.S. banks with total assets of USD 4.0 billion. Banamex owns California Commerce Bank, based in Los Angeles, and Bancomer owns Grossmont Bank of La Mesa, California. Five Mexican banks had U.S. representative offices. Development Banks. Mexico has seven government-owned development banks which provide services to specific areas of the economy. The dominant institutions are Nacional Financiera (Nafin) and the External Trade Bank (Bancomext). These institutions have become primarily second-tier banks which reach priority sectors by lending through commercial banks and other financial intermediaries such as credit unions, savings and loans and leasing and factoring companies. Nafin's primary program funds micro, small and medium-sized businesses. During 1993, 68 percent of Nafin financing went to micro, small and medium-sized business. It also funds programs in technological development, environmental amelioration, and industrial infrastructure. Nafin also undertakes strategic equity investments and contributes equity to joint ventures. Nafin's loan portfolio totaled USD 21 billion at the end of 1993. Bancomext provides financing to activities which result in Mexican exports and has become a major source of finance for small and medium-sized companies. It also offers working capital, project lending and training to firms in several specific sectors which require support, such as textiles and footwear. During 1993, Bancomext's loans grew by a real 13 percent to USD 11.6 billion. The mission of development banks to fill financing shortfalls in the commercial banking sector took on greater importance in 1993. Commercial banks adopted more conservative lending policies due to slow economic growth and a growing burden of non-peforming loans, and growth in rediscounted loans grew faster than growth in direct loans. At the end of 1993, Mexico's commercial banks had assets of USD 202 billion and computable capital of USD 12.7 billion. Development banks reported assets of USD 62.9 billion and computable capital of USD 5.0 billion. Exchange Controls The Mexican peso trades against the dollar in a managed float. The value of the peso is established in the currency market within a range of preestablished values known as the foreign exchange band. The floor of the band (the maximum value of the peso) is fixed at 3.0512 new pesos/dollar. The ceiling of the band (the minimum allowable value of the peso) devalues at a rate of 0.0004 new pesos per day. On May 31, 1994 the ceiling of the band was 3.3210 new pesos/dollar and the market value of the peso was 3.3100 new pesos/dollar. The peso is traded among authorized Mexican banks and brokerage houses on a cash basis and for 24-hour and 48-hour settlement. Foreign exchange coverage contracts are available in maturities of up to 180 days. The Mexican monetary unit is the new peso, which was introduced in 1993. One new peso equals 1,000 (old) pesos. The new peso will again become the peso in the late 1990's when all old pesos have been taken out of circulation. There are no controls on the transfer of dollars into and out of Mexico. This means that profits can be repatriated freely. Financing Availability Credit is limited and currently expensive in Mexico. Peso- denominated credit is mostly short-term, a legacy of the very high inflation during the 1980's, and expensive, the result of high primary interest rates and large margins among the banks. The average cost of funds for banks was 16.9 percent in 1992, 17.3 percent in 1993, and 13.6 percent during the period January to May 1994. At the end of 1993, the average net interest margin of commercial banks was 6.87 percent. High interest rates in 1992, for much of 1993, and again in early 1994 limited access to commercial bank financing by many prospective borrowers. Dollar financing is less expensive for those companies which qualify for it, but is limited by the ability of banks to raise dollars overseas and by limitations on the growth of dollar liabilities not guaranteed by an export credit agency. Factors which are helping to bring down bank interest rates are an improved country risk profile for Mexico, which reduces overseas borrowing costs, and increased competition. Credit is nevertheless growing in Mexico. Credit extended to the non-banking private sector by Mexico's commercial banks grew at an average nominal rate of 51 percent between 1990 and 1993. The elimination of the public sector deficit was important in freeing up funds for the private sector. The privatization of the banks provided an incentive for banks to increase their lending, and the return of Mexico to the voluntary capital markets provided a source of less expensive financing for bank activities. The availability of credit will increase with the proliferation of banks and also with the growth of non-bank credit institutions. Financial factoring, financial leasing, and general warehousing are some of the alternatives to banks in Mexico. The first limited object finance company, similar to a non-bank bank in the United States, was authorized in 1993 and at least 15 licenses have been issued. Trade Finance in Mexico Credit Markets. Several factors combine to make business credit expensive and difficult to obtain in Mexico. The recently reprivatized banking system is still highly concentrated, with only 18 fully functioning commercial banks. Up until now, 14 new banks have been authorized, but have been slow to organize. Foreign banks will begin operating in Mexico before year-end, but their impact will be gradual and they will concentrate on the upper end of the market. Competition will thus not be as keen as exporters see in the United States. In addition, banks became outdated and inefficient under government control, and were left with large amounts of poor quality loans. Combined with high bank purchase prices and the desire to recover the purchase price as quickly as possible, this has led Mexican banks to charge extremely high interest rates and fees and to restrict lending. Salinas administration policies, successful in establishing a solid macroeconomic foundation for further growth, have maintained interest rates at high real levels. Mexico has also increased its imports, particularly of capital and intermediate goods. The resulting trade deficit plus debt service on Mexico's still-significant foreign debt have created current account deficits in excess of $20 billion per year, requiring Mexico to offer interest rates attractive to foreign investors. Mexican firms have also been buffeted by new competition made possible by NAFTA and other foreign competition made more formidable by a peso which steadily increased in value until the net 5 percent correction this year. Inefficient Mexican producers find themselves unable to meet the new competition and unable to generate investment funds to modernize. Lack of business credit has exacerbated this phenomenon. The result has been that interest rates for all but the largest Mexican companies (who have access to international capital markets) have been in the mid-20's, compared to the current inflation rate of 7-8 percent. Many companies have no effective access to credit since their creditworthiness has been impaired by lack of profitability and cash flow. Credit problems at Mexican banks have contributed to this. Implications for Trade Finance. While buyer credit has always been important both domestically and internationally, credit market conditions make trade finance particularly crucial at this time in Mexico. Buyer credit must be seen as part of working capital and fixed asset financing in this context in that not only is it a competitive tool but also must substitute for financing traditionally provided by the domestic banking system. Mexican customers may simply be unable to purchase imported goods without some kind of external financing. Trade Finance Tools in the Mexican Context. The following discusses the applicability and desirability of traditional tools. It is intended to give some guidance to American exporters as to the type of transactions they might want to attempt in Mexico. Advance payment: Exporters will find few customers willing and/or able to purchase through advance payment. For one thing, unless the exporter's product is unique or indispensable and irreplaceable in a customer's production process, third-country or other American competitors may well be willing to grant more favorable terms. For another, advance payment for an imported product means the customer will likely be without the product for some time after paying for it, due to processing, transportion, and customs delays. Few Mexican companies can finance this, and fewer want to. Demand for advance payment may well kill a sale. Letters of Credit: While a letter of credit provides a good measure of security for the exporter, many Mexican companies are unwilling or unable to provide them. Banks generally issue letters of credit based on an ongoing credit relationship and carve out from a company's normal credit line the amount corresponding to the LC. Even if a company has a sufficient unused credit balance, it may not want to do this because it needs the credit for other purposes. For companies which are not customers or which have fully utilized their approved lines, Mexican banks will demand cash collateral. Companies with insufficient liquidity will be unable to obtain letters of credit. A large portion of Mexican companies fall under this category. There is also the cost--Mexican banks charge several times as much for LC obligations as do American banks. Given that a Mexican customer has access to LC's, they can be a good alternative for both conducting an international sale as well as for financing it. There is no lack of Mexican banks which issue letters of credit, and also no lack of Amercian banks willing to confirm them. Virtually every American bank doing international business has correspondent relations with at least the top Mexican banks, and most can transact business with virtually all Mexican banks which traditionally issue LC's. Most banks will also accept time drafts under LC's from at least some of the banks. Exporters should take advantage of LC's to provide financing. This is a risk-free and relatively inexpensive way to finance a customer's purchase. By discounting the drafts resulting from a time LC, a company can finance its customer at the rough equivalent of the prime rate or less for up to 180 days, and can pass the cost along to customer in the form of a slightly higher product price. Documentary Collections. Given that an exporter's customer is unable or unwilling to provide an LC, that the exporter has a trusting relationship with the purchaser, and that the purchaser has reasonably sound finances, some form of documentary collection, whether sight or time, can be very useful. While this certainly entails more risk than an LC, it is also true that, contrary to popular belief, Mexican companies often possess business ethics equivalent to those of American companies. Prudent credit review practices may permit U.S. companies to sell under this payment form without undertaking undue risk. Open Account: Many U.S. companies sell to Mexico open account. It is not all unusual, and their experience indicates that, again with prudent credit review practices, open account sales in Mexico need not be inherently risky. Dun and Bradstreet is open in Mexico and credit information is available through the US&FCS World Trader Data Report. For any sizeable transaction or relationship, exporters should demand financial statements just as they might in the U.S., and also should visit the customer's facility and meet with the major officers in order to assess their capacity and seriousness. Standby Letters of Credit: Many companies export under standbys. This method can be extremely useful for frequent shipments, particularly small ones which fall below the minimum LC size at which banks begin to charge a percentage instead of a flat fee. There are savings as well in terms of administration because no individual LC's are established or documented. Unfortunately, standbys in Mexico are expensive and they suffer from the same drawback as commercial LC's--the customer may have no availability under credit lines or may not be able forego the corresponding portion of its credit line. Receivables Insurance: Several parties offer receivables insurance in Mexico. The best known are the U.S. Export-Import Bank (EXIM), American International Group (AIG), and the Foreign Credit Insurance Association (FCIA). EXIM's insurance carries the full faith and credit of the U.S. government. The others are private insurance companies. While all underwrite insurance in Mexico, restrictions, customer qualification criteria, and premiums vary. This insurance can enable a company to give terms of up to 180 days to purchasers, who will view the transaction as open account. Knowledgeable international banks will finance insured receivables, whereas most banks will not finance uninsured foreign receivables which are not under letters of credit. EXIM insurance is the most accepted by banks, but more banks are becoming comfortable with the private sector products. The cost of the insurance and the financing can often be passed on to the customer in the form of a higher product price. It is not recommended that financing costs, whether under insurance or any other financing mechanism, be set out as a separate line item since a Mexican tax liability will arise from the payment of interest. U.S. Bank Guarantees: Some larger U.S. banks may be willing to lend against Mexican receivables credit. This will work only for the very largest and most creditworthy companies. However, many U.S. banks now provide trade advances to Mexican banks under approved lines of credit. Their control over whose exports are supported under such credit will vary. Mexican banks have had no problem getting trade line commitments from U.S. banks, and for their own ease of operation do not like to see any restrictions on which trade transactions are included. Some U.S. banks do maintain some control so that they can channel the benefits of these lines of credit to their customers. Individual transaction guarantees may also be available. An exporter's bank may be willing to cross-guarantee a Mexican bank without any formal line of credit commitment to the bank. It should be noted that an exporter could well accept the Mexican bank's guarantee without a cross-guarantee. Bank credit services such as the International Bank Credit Association (IBCA) can provide valuable insight into bank conditions. Medium and Long Term Trade Financing: There are fewer options for low-risk financing beyond one year. Almost no U.S. banks or even European or Japanese banks will take uncovered long-term Mexican risk except with the very largest and most creditworthy Mexican companies. Forfaiting (sale without recourse of a receivable or stream of receivables) is available in Mexico, but the terms do not go out much over two years, and the perceived greater risk makes this form of financing expensive in Mexico. Virtually the only option here is EXIM, which issues guarantees for medium-term loans to purchasers of capital equipment. The loans are actually made by American banks with EXIM's guarantee EXIM is extremely active in Mexico, where it has over one-fourth of its worldwide commitments. Much of EXIM's activity is under so- called bundling facilities. A bundling facility is a large medium-term loan made to a Mexican bank by an American bank with the guarantee of EXIM bank. The Mexican bank then makes loans for the purchase of American capital goods to Mexican companies. It undertakes the credit assessment and risk since it effectively counter-guarantees the loans it makes. U.S. companies should direct their foreign buyers to one of the following Mexican financial institutions which enjoy bundling facilities: Arrendadora Bancomer Banamex Banca Serfin Banco del Atlantico Banco Internacional Banco Mercantil del Norte (BANORTE) Banco Mexicano Banco Nacional de Comercio Exterior Banco Union (from Banca Cremi, which merged with Banco BCH) Bancomer Bancrecer (formerly Bancreser) Banco Nacional de Obras Publicas (BANOBRAS) Banpais Multibanco Comermex All of the above are banks except for Arrendadora Bancomer, which is a leasing company. There are also several large public and private sector companies which have special buyer facilities from U.S. banks which are guaranteed by EXIM: Comision Federal de Electricidad (CFE, government utility) Fomento Economico Mexicano S.A. (FEMSA, private beer and soft drink giant) Ingenieros Civiles Asociados (ICA, one of Mexico's largest engineering and construction companies) Maquinaria Diesel S.A. Sistema Argos Spicer S.A. de C.V. Telmex Tracsa, S.A. de C.V. (Mexico's largest heavy equipment dealer) The bundling facilities may be useful to U.S exporters in that the Mexican risk has already been approved. The Mexican bank facilities allow faster credit decisions than might be made by EXIM on a separate transaction. If time is crucial, an exporter might make sure that his customer apply to a Mexican bank which enjoys one of these facilities. If an exporter thinks his purchaser may qualify for an EXIM loan without a Mexican bank guarantee or if time permits, it may be useful to request an EXIM guarantee separate from a bundling facility. This may well result in a lower financing cost and longer amortization period for the purchaser. Mexican banks have been lending funds from the bundling facilities at shorter terms and overall costs approaching those of their normal domestic lendings. The disadvantage of a separate guarantee application is that the overwhelmed staff at EXIM may take substantially longer to approve the transaction and issue the guarantee. EXIM will be very reluctant to approve separate guarantees for transactions of $100,000 or less, and will make every effort to steer them to bundling facilities. The larger the transaction, the more likely EXIM is to approve it outside the bundling facilities. EXIM's medium-term receivables insurance program can be an alternative to the guarantee program. The rules and costs are exactly the same as of June 1994, when EXIM insurance began covering 100 percent of the risk of the value of U.S. content. The advantages are in speed and cost to the purchaser under small sales. Insurance coverage will be processed faster, usually within 10 days compared to two to four months under the guarantee program. The transaction will not be forced into a bundling facility and will not be financed or approved by a Mexican bank, meaning that the exporter can pass on his lower financing costs to the customer by borrowing against the insurance if necessary. The catch is that some of the credit approval back-up documentation under the insurance program may be difficult in Mexico for companies which are part of larger industrial groups. The exporter must obtain credit reports and financial information on the operating subsidiary and the parent company, which may be problemmatic under the Mexican private sector's often complicated holding company structures. Some of this might have to be done for the guarantee program anyway Local Sources of Customer Financing. Exporters should be aware that Banco Nacional de Comercio Exterior (BANCOMEXT, Mexico's equivalent of EXIM) and Nacional Financiera (NAFINSA, a government owned national development bank) have programs to finance imports by Mexican companies. Covered products include capital goods and technology intended to modernize companies to enable them to become more competitive and to export, as well as raw materials and other inputs. Not all Mexican companies are aware of these programs, so American exporters may want to suggest them to potential customers if their products fall into these categories. Project Financing in Mexico Project financing must be separated into two concepts, pure project financing and financing for projects. These two are not synonymous. Pure project financing requires that the only source of collateral, investment return, and loan repayment be revenues derived from services and/or products resulting from the investment. The project must be literally self-financing, without reliance on guarantees or other undertakings from owners or third parties. Pure project financing thus requires highly certain revenue flows based on market and ecomomic forces rather than the financial will and capacity of operators, owners, or other interested parties. It is typically seen in utility-type industries such as electrical power, water supplies, drainage, and certain environmental projects. These industries provide highly stable and predictable revenue flows based on indispensable products and services. This type of financing is often provided by banks, investor groups, and large institutional investors such as insurance companies, as well as through public offerings of bonds and other capital market instruments. Such financing is in its infancy in Mexico. There are several reasons for that. For one thing, nearly all of the products and services normally included in project financing have in Mexico been traditionally provided by the government, and have been handled either through large international loan syndications direct to the federal government or its operating entities or through multilateral credits. For another, even where private sector investment has been allowed in utility-type industries (this has been very limited until recently), clear and reasonable regulation has been lacking. This has prevented the stable and predictable atmosphere essential for pure project finance. Mexico now appears to be entering a new era in that regard. There are several examples of privatized utility-type operations where project finance may take root: the Mexico City water supply concessions granted to four large construction and engineering companies; the recent successful securitization based on toll receipts by a highway construction company of its investment in a build- operate-transfer (BOT) project; a recently inaugurated privately financed sewage treatment plant; and the provision by the state- owned electrical utility (Comision Federal de Electricidad, or CFE) for privately-owned generating facilities. Many of this type of project will be undertaken in Mexico, offering great opportunity to sell products and services needed by such projects. There are still problems and gray areas (e.g., clear and reasonable regulations and pricing by CFE for back-up power and offtake), but these should be resolved gradually. In the meantime, U.S. exporters of products and services used in large projects will have to dovetail off financing provided by official sources. For Mexico, those are EXIM, the World Bank, the Internamerican Development Bank (IDB), the soon-to-be-organized North American Development Bank, and the U.S. Trade and Development Agency. There is also activity by the Japanese EXIM and other national export promotion entities, but they will be less useful to U.S. companies. U.S. Export-Import Bank. Eximbank will finance the U.S. content portion of any major project, but otherwise does little in the way of project finance. A new variation which comes closer to project financing is a Memorandum of Understanding recently signed by EXIM and Mexico's Banco Nacional de Obras y Servicios Publicos (BANOBRAS, a national development bank). This agreement will allow EXIM to finance up to $500 million of U.S. exports of environmental goods and services over the next five years. The agreement will promote the construction of waste-water treatment facilities by municipalities. The project is a response to the lack of true project financing mentioned above. Municipalities will select private companies for BOT projects. BANOBRAS and EXIM will provide a back-up source of repayment to lenders in case user fee revenues are inadequate. It is envisioned that this will attract lenders for the projects. BANOBRAS will provide a "contingent revolving line of credit" to ensure payments to project operators, and EXIM will provide commercial banks with guarantees for financing of exports of U.S. goods and services. This scheme removes uncertainties regarding user fee levels by in effect attaching the full faith and credit of the Mexican government which BANOBRAS enjoys. World Bank. The World Bank is extremely active in Mexico. As of the latest listing by the Bank and its affiliated International Development Association, $5,137 million in 21 projects were either proposed or approved in Mexico for near-term inauguration. Current projects are broadly categorized as follows: Environmental (4 projects, $1,320 million): Industrial pollution control (improving regulation and enforcement and assisting in conversion to cleaner technology). Implementation of national toxic and hazardous waste policy and building necessary infrastructure. Northern border environmental improvement through water supply, sanitation, hazardous and solid waste management, protected areas, and strengthening of key institutions. Improve municipal solid waste management, including implementation. Infrastructure (7 projects, $1,335 million): Improve and build mass transit in medium-size cities. Restructure CFE. Water supply and sanitation, institutional and investment support. Dam safety and flood monitoring On-farm and minor irrigation network improvement and development. Rural small-scale irrigation, small-scale private extension, and institutional development. Restructuring of the rail sector to promote commercial orientation and financial viability. Education (4 projects, $1,112 million): Technical education and training modernization. Development of pre-school education. Improvement of secondary education through curriculum and textbook development, training and technology. Improvement of primary education through teacher training, materials, and institutional strengthening. Other (6 projects, $1,300 million): Support BANOBRAS in improving municipal financial management. Promote sustainable development of aquaculture through public sector framework for aquaculture and coastal area development. Develop national forestry through implementing new legislation, improving communal landholding management, and promoting environmentally sound land development and conservation. Reduce poverty and improve nutrition through food distribution. Improve health care resource use and medical services and strengthen institutional capacities. Most of the above projects will have substantial consulting service components as well as equipment needs. Interested parties should contact the World Bank to find out whom to contact in the Mexican implementing entity. Interamerican Development Bank (IDB). The IDB has $2 billion in projects underway in Mexico. These are as follows: --Improving scientific and technological development and training in Mexico, in conjunction with the National Autonomous University of Mexico (UNAM) and the National Commission on Science and Technology (CONACYT) --Tourism infrastructure development in Huatulco, Ixtapa, Cancun, and los Cabos, with the Secretariat of Tourism and BANOBRAS --Potable water across Mexico, in conjunction with the National Water Commission (CNA) --Conservation in Mexico City, through a "debt for ecology" swap program, in conjunction with the Commission for Resource Development of the Federal District (COCODER) --Investment in the electricity sector, in conjunction with CFE --Potable water in Monterrey --Building and improvement of feeder roads, in conjunction with the National Commission on Secondary Roads (CONCONAL) --Modernize small and mid-size business, in conjunction with NAFINSA The IDB has several other projects under study, including municipal infrastructure, primary and technical education, a potable water project in Guadalajara, a health project in conjunction with the Panamerican Health Organization, and expansion of the small business assistance project. North American Development Bank. This institution is still being organized. To complement the NAFTA, the bank is expected to provide between $2 billion and $3 billion in loans and guarantees to support border envirionmental projects. The bank will begin operations in FY 1995. Bids for bank-sponsored projects will be propagated in the normal channels such as Commerce Business Daily, the Journal of Commerce, and Mexico's Diario Oficial. U.S. Trade and Development Agency. TDA provides grants for feasibility studies and training. The intent of feasibility studies is to build U.S. products into the project design, while the training aspect is an added incentive to use U.S. products, since such training applies only to U.S. content. Most of TDA's grants fall under the feasibility study framework, where TDA will provide 80 percent of the cost of the study. Such studies normally support large projects, since TDA aims at projects with a mimimum U.S. content of $20 million. These are of interest in three ways. First, consulting firms can obtain work through them. Second, parties conducting feasibility studies can be and often are firms which gain the final development contract. Third, firms not specifically developing the project may sell equipment and components to it. These projects will generally be undertaken by government entities, often with funding from multilateral institutions which makes payment more secure, and large private sector companies that have solid financial underpinnings. For information on multilateral bank related business opportunities, please contact: Office of Multilateral Development Banks U.S. & Foreign Commercial Service U.S. Department of Commerce, Room H-1107 Washington, DC. 20230 Tel: (202) 482-3399 Fax: (202) 273-0927 TDA is quite active in Mexico. It normally supports projects which contribute to economic development, usually in infrastructure. In Mexico, it has been looking at electricity congeneration and waste water treatment. It will probably remain active in those areas, but will consider any large projects which have the potential to use large amounts of U.S. products and contribute to Mexico's development. TDA's projects are handled through open tenders. These are published in the Journal of Commerce and Commerce Business Daily as well as other media. Questions about specific projects should be directed to TDA. The following is a list of the commercial banks, development banks and representative offices of U.S. banks in Mexico. For recently- authorized commercial banks, the date of authorization is given in parenthesis. MEXICAN COMMERCIAL BANKS Banca Confia, S.A. Reforma 450, P.H. Mexico, D.F. 06500 Tel: 207-0197 Fax: 208-9579 Ing. Jorge Lankenau Rocha Presidente del Consejo Administrativo y Director General Banca Cremi, S.A. Reforma 93 Mexico, D.F. 06090 Tel: 703-0333 Fax: 535-4778 Mr. Robert Bailey Presidente del Comit de Alta Direcci n Banca Promex, S.A. Rio Amazonas #91 Col. Cuauhtemoc Mexico, D.F. 06500 Tel: 227-5100 Fax: 208-1756 Lic. Moises Tiktin Nickin Director General Banca Quadrum, S.A. Periferico Sur #4249, Piso 3 Col. Jardines en la Montana Mexico, D.F. 14210 Tel: 723-9070 Fax: 645-3964 Lic. Rafael Viscaino Director, Area Internacional (Authorized 9/2/93) Banca Serfin, S.A. Insurgentes Sur 1931, Piso 8 Mexico, D.F. 01020 Tel: 662-7160 662-0200 (switchboard) Fax: 662-9911 Lic. Abelardo Morales Puron Director General Banco Capital, S.A. Blvd. M. Avila Camacho #184, Torre Capital, Piso 18 Col. Reforma Social Mexico, D.F. 11650 Tel: 626-6810 to 6840 Fax: 511-1649 Lic. Pedro Boullosa Director General (Authorized 6/3/93) Banco del Atlantico, S.A. Hidalgo 128, Coyoacan Mexico, D.F. 04030 Tel: 626-1778 Fax: 658-9062 Lic. Fernando Ramos Gonzalez de Castilla Director General Banco del Centro, S.A. Reforma 195 Mexico, D.F. 06500 Tel: 566-7259 Fax: 576-3111 Ing. Luis Cervantes Coste Director General Banco del Oriente Insurgentes Sur 527 Mexico, D.F. 06140 Tel: 272-5455 Fax: 515-7139 Lic. Alberto Nunez Pena Director General Banco del Sureste Fuente de Piramides #1, Piso 7 Tecamachalco, Naucalpan Edo. de Mexico 53950 Tel: 727-9500 Fax: 589-1036 C.P. Eduardo Creel Cobian Presidente del Consejo (Authorized 6/3/93) Banco Inbursa, S.A. Paseo Las Palmas #736, Planta Baja Col. Lomas de Chapultepec Tel: 202-1122 Fax: 520-5326 Lic. Jose Ponce Director, Area Internacional (Authorized 9/2/93) Banco Industrial, S.A. Prol. Ave. Americas #1619, Piso 6 Guadalajara 44620, Jalisco Mexico Tel: (3) 678-1843 to 47 Fax: (3) 678-1858 Mr. Joel Moreno Purchasing Director (Authorized 6/3/93) Banco Interacciones, S.A. de C.V. Reforma 383, Piso 15 Col. Cuauhtemoc Mexico, D.F. 06500 Tel: 264-2800 Fax: 207-5440 Reynaldo Spinelli Director, Area Internacional (Authorized 9/93) Banco Interestatal, S.A. Ave. Manuel Vallarta #2086 Sur Centro Sinaloa Culiacan 80129, Sinaloa Mexico Tel: (67) 17-5600 Fax: (67) 14-7257 Mr. Juan Carlos Valenzuela Reyes Purchasing Director (Authorized 6/3/93) Banco Internacional, S.A. Reforma 156 Mexico, D.F. 06600 Tel: 721-2983 Fax: 721-2993 C.P. Antonio del Valle Ruiz Director General Banco Mercantil del Norte, S.A. Madero 22, Col. Centro Mexico, D.F. 06000 Tel: 512-7440 Fax: 512-3685 Lic. Francisco Gonzalez Martinez Director General Banco Mexicano, S.A. Reforma 211, Piso 17 Mexico, D.F. 06500 Tel: 592-5008 (switchboard 591-1611) Fax: 566-8493 Lic. Manuel Somoza Alonso Director General Banco Mifel Emerson #304, Piso 3 Col. Polanco Mexico, D.F. 11560 Tel: 203-4018 Fax: 254-3460 Contador Adela de Paz Director Administrativo (Authorized 9/93) Banco Nacional de Mexico, S.A. (Banamex) Isabel la Catolica 44, Piso 1 Mexico, D.F. 06089 Tel: 225-5178 Fax: 709-9446 C.P. Alfredo Harp Helu Presidente del Comite de Direccion Banco Obrero, S.A. Calle de Viena #4, Piso 5 Col. Juarez Mexico, D.F. 06600 Tel: 705-4324 Fax: 705-6217 Lic. Francisco Suarez D. Director General Banco Promotor del Norte, S.A. Berna #6, Col. Juarez Mexico, D.F. 06600 Tel: 627-9219 Fax: 627-9299 Lic. Eduardo Solorzano Director, Area Internacional Banco Union, S.A. Reforma 364, Piso 2 Mexico, D.F. 06694 Tel: 208-4527 (switchboard 625-6000) Fax: 207-5554 Mr. Robert Bailey Director General Bancomer, S.A. Ave. Universidad #1200, Piso 2 Mexico, D.F. 03339 Tel: 621-3301 (switchboard 621-0034) Fax: 621-3988 Ing. Ricardo Guajardo Touche Director General Bancrecer, S.A. Reforma 116 Mexico, D.F. 06600 Tel: 535-2685 Fax: 703-0605 Mr. Ruben Acosta Carranco Director General Banpais, S.A. Reforma 359, Piso 9 Mexico, D.F. 06500 Tel: 208-8176 (switchboard 208-2044) Fax: 207-6965 Lic. Jaime Sanchez Montemayor Director General Citibank N.A. Reforma 390, Piso 18 Col. Juarez Mexico, D.F. 06600 Tel: 211-3030 Fax: 207-5457 Lic. Julio A. de Quesada Director General Multibanco Comermex, S.A. Blvd. M. Avila Camacho #1, Piso 18 Mexico, D.F. 11560 Tel: 229-2000 (switchboard 229-2929) Fax: 229-2157 Mr. Francisco Javier Alcala de Leon Director General Multibanco Mercantil Probursa, S.A. Montes Urales 620, Piso 3 Lomas de Chapultepec Mexico, D.F. 11000 Tel: 325-8888 Fax: 325-8054 Lic. Jose Madariaga Lomelin Presidente Ejecutivo MEXICAN GOVERNMENT-OWNED BANKS Banco Nacional de Comercio Exterior (Bancomext) Camino a Sta. Teresa 1679, Piso 11, Ala Sur Col. Jardines del Pedregal Mexico, D.F. 01900 Tel: 327-6012 Fax: 652-9408 Actuario Enrique Vilatela Riba Director General Banco Nacional de Comercio Interior (BNCI) Reforma 262 Mexico, D.F. 06600 Tel: 207-4557 (switchboard 208-2199) Fax: 208-8011 C.P. Roberto Dieguez Armas Director General Banco Nacional de Cr dito Rural (Banrural) Agrarismo #227, Col. Escandon Mexico, D.F. 11800 Tel: 273-1455 (switchboard 271-5566) Fax: 273-2065 Ing. Jaime de la Mora Director General Banco Nacional de Obras y Servicios Publicos, S.N.C. (Banobras) Calle Tecoyotitla #100 Col. Florida Mexico, D.F. 01030 Tel: 723-6202 Fax: 723-6108 Dr. Jacques Rogozinsky S. Director General Banco Nacional del Ejercito, Fuerza Aerea y Armada, S.N.C. (Banjercito) Ave. Industria Militar #1055 Lomas de Sotelo Mexico, D.F. 11200 Tel: 557-8661 (switchboard 557-9188) Fax: 557-6249 Cnel. de Caballeria y L.A.E. Jose Luis Coronel Guzman Director General Nacional Financiera Insurgentes Sur 1971, Torre IV, Piso 8 Col. Guadalupe Inn Mexico, D.F. 01020 Tel: 325-7050 325-7080 Fax: 325-7249 Lic. Federico Patino Marquez Director Internacional Representative Offices of U.S. Banks in Mexico American Express Bank, L.T.D. Moliere 13, Piso 5 Col. Polanco Chapultepec Mexico, D.F. 11560 Tel: 282-0988 288-1666 Fax: 282-2355 Felipe Jesus Leon Machorro Representative American National Bank and Trust Company of Chicago Periferico Sur 3190, Piso 1 Mexico, D.F. Guillermo Eduardo Samame Representative Baer American Banking Corporation Sierra Nevada 445 Col. Lomas de Chapultepec Mexico, D.F. 11000 Tel: 202-0704 Fax: 282-4706 Curtis L. Lowell Representative Banco de Venezuela International Lafontaine #92 Col. Polanco Mexico, D.F. 11560 Tel: 282-1211 Fax: 282-1405 Sergio Nicolau Representative Bank of America National Trust and Savings Association Reforma 116, Piso 12 Col. Juarez Mexico, D.F. 06600 Tel: 591-0011 Fax: 546-8026 Rodolfo Alborelli Foti Representative Bank One, Milwaukee, National Association Rio Sena 54, Planta Baja Col. Cuauhtemoc Mexico D.F. 06500 Tel: 535-6372 546-7178 566-2997 Fax: 535-6372 Carlos Damaso Galguera Representative Bankers Trust Company Blvd. Manuel A. Camacho 1, Despacho 806 Col. Polanco Chapultepec Mexico, D.F. 11560 Tel: 540-3897 540-3575 540-3635 540-4855 540-2651 Fax: 520-3828 520-5740 Miguel Angel Noriega Candano Representative California Commerce Bank Andres Bello 45, Pisos 8, 17, 27 Col. Polanco Chapultepec Mexico, D.F. 11560 Tel: 725-8760 725-8395 Fax: 725-8676 Jaime Chavez Llerenas Representative Citibank, N.A. Reforma 390, Piso 18 Col. Juarez Mexico, D.F. 06600 Tel: 211-3030 207-3178 229-7100 Fax: 207-5457 Gabriel Jaramillo Sanint Director and Representative CoBank National Bank for Cooperatives Insurgentes Sur 1802, Piso 3 Col. Florida San Angel Mexico, D.F. 01030 Tel: 661-2776 661-9408 661-9785 Fax: 661-9408 David A. Barraza Representative Continental Bank, National Association Blvd. Manuel Avila Camacho 1, Piso 1, Despacho 101 Col. Los Morales Polanco Mexico, D.F. 11510 Tel: 395-3588 395-3887 Fax: 395-4588 Federico Gonzalez Gomez Representative Chemical Bank Campos Eliseos 400, Piso 15 Col. Chapultepec Polanco Mexico, D.F. 11000 Tel: 280-0086 280-8817 280-8062 Fax: 280-8691 280-0842 John S. Donnelly Representative Crocker National Bank Reforma 300 - 200 Col. Cuauhtemoc Mexico, D.F. 06500 Tel: 533-6125 533-6126 William N. Krauss Representative Fleet National Bank Lucerna 80, Piso 6 Mexico, D.F. Representative Grossmont Bank Centro Bancomer Ave. Universidad 1200 Col. Xoco Mexico, D.F. 03339 Tel: 621-3597 621-3598 Fax: 658-4740 Miguel Enrique Garibay Representative Midland International Trade Services (USA) Corp. Campos Eliseos 345, Piso 12 Col. Polanco Chapultepec Mexico, D.F. 11560 Tel: 281-3856 281-3600 281-4624 Fax: 281-5499 Jonathan Paul Hartley Representative Morgan Guaranty Trust Company of New York Blvd. Manuel A. Camacho 1, Despacho 802 Col. Polanco Chapultepec Mexico, D.F. 11560 Tel: 540-6765 to 69 Fax: 237-1932 Eduardo Cepeda Representative NationsBank of Texas, National Association Reforma 509, Piso 3 Col. Cuauhtemoc Mexico, D.F. 06500 Tel: 553-3355 Fax: 553-3366 Ramon Cesar Perez Representative Republic National Bank of New York Presidente Masaryk 101-1401 Col. Chapultepec Morales Mexico, D.F. 11570 Tel: 254-6059 Fax: 203-5941 Humberto Treves Representative Serfin International Bank & Trust Periferico Sur #3395 Col. Rincon del Pedregal Mexico, D.F. 14120 Tel: 629-9983 Fax: 629-9983 Rocio Rodriguez Representative Texas Commerce Bank Ave. Campos Eliseos #400, Piso 15 Mexico, D.F. 11000 Tel: 280-4211 Fax: 280-8691 John S. Donnelly Representative The Chase Manhattan Bank, N.A. Hamburgo 213, Piso 7 Col. Juarez Mexico, D.F. 06600 Tel: 208-6066 208-5666 208-6266 Fax: 208-5604 208-6566 208-3000 Manuel Celito Pe]a-Morros Representative The First National Bank of Boston Ruben Dario #281, Torre Chapultepec, Piso 12 Col. Bosques de Chapultepec Mexico, D.F. 11580 Tel: 282-2695 Fax: 282-0019 Stephen Thomas Griesemer Representative