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Latino Daily News

Wednesday January 23, 2013

Acapulco Has Repaid Debt, Allowed to Borrow Again

Acapulco Has Repaid Debt, Allowed to Borrow Again

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The world famous Mexican Pacific resort city of Acapulco has repaid the debt it owed a bank and will be able to resume borrowing in the next few days, Mayor Luis Walton said.

The city paid 50.9 million pesos (about $4 million) to Bancomer on Monday, Walton said.

“It was a debt of approximately 58 millon (pesos) and we managed to get the bank to forgive the past due interest for us,” the mayor told the Novedades de Acapulco newspaper.

The city should be out of arrears in less than a week and will be able to seek a new bank loan, Walton said.

The bank loan will be used to cover the municipal payroll, the mayor said, without disclosing the amount of the loan being sought.

Walton revealed on Dec. 28 that the Acapulco city government had been prevented from obtaining a bank loan of 80 million pesos ($6.3 million) because it was in arrears on a loan taken out by the administration of former Mayor Manuel AƱorve.

Acapulco, one of Mexico’s most famous tourist destinations, has been plagued by drug-related violence in recent years.

The Guerrero state government launched a security operation in 2011 with the support of the federal government to step up security in areas frequented by foreign and domestic tourists.

“Operation Safe Guerrero” was launched on Oct. 6, 2011, in an effort to reduce the soaring crime rate in the state.

Acapulco, a favorite among Mexican and foreign tourists for decades, has lost business to other destinations due to the violence.