Mexico's Financiero Interacciones sees cheaper loans on Banorte tie-up

From Reuters - February 14, 2018

MEXICO CITY (Reuters) - Mexicos state and municipal government debt sector will likely see lower borrowing costs in the coming months following the acquisition of Grupo Financiero Interacciones by Banorte, Interacciones CEO said on Wednesday.

The tie-up between Mexican-owned bank Banorte and the smaller Interacciones, which was announced late last year, is expected to create the countrys second biggest bank once the deal is finalized during the first half of 2018.

Interacciones was already a major player in offering loans to Mexicos local governments, which had a total debt of about 560 billion pesos ($30.15 billion), according to data from September.

As of late last year, the two firms combined accounted for almost half of the sectors loan portfolio, figures from Mexicos banking regulator show.

This will allow us to be much more aggressive, said Interacciones CEO Carlos Rojo in an interview, noting the lenders ability to now offer lower rates.


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