Photo: Homebuilders Mexico
The Mexican government has announced that it will be covering up to 30% of bad bank loans taken out by homebuilders and guarantee up to 50% of loans taken out by “healthy” homebuilders, in essence throwing them a $1.2 billion lifeline.
This move will help reduce worries about access to credit for the struggling homebuilding industry and helps builders most hurt by the governments move away from promoting single home construction.
Since the government started subsidizing multiple unit housing construction the industry has taken a hard hit. Construction company stocks rose upon the governments announcement.