Mexico Secures IDB Swine Flu Aid

The IDB says it will approve $3bn in loans to Mexico this year to help it deal with the effects of the global economic crisis and swine flu emergency. “The swine flu emergency could worsen Mexico’s contraction, adding to the economic slowdown caused by decreases in remittances and exports,” the bank says. In addition to the $3bn in loans, the IDB says it will grant $1m to support efforts to detect new flu cases and launch a $5m regional initiative with the Pan American Health Organization to help Central American countries strengthen their early alert and diagnostic mechanisms to prevent the spread of the swine flu and other infectious diseases. In general, these public sector loans will have an amortization period ranging from 15-25 years and a grace period between 4-5 years with an interest rate over Libor or adjustable rates, a spokesman explained.