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MEXICO
CITY (Dow Jones)--The Mexican government will soon launch a
financing program for the country's cash-strapped sugar mills,
as funding for the sector has diminished on the back of missed
debt payments from several sugar companies.
Top
government officials said early this week that Mexico's
finance and agriculture ministries have arranged a financing
package - ranging from $350 million to $420 million - with
support from local and international banks.
Juan
Carlos Cortes, Deputy Agriculture Minister, said sugar millers
will have access to the financing as early as next week.
In
a second stage, sugar companies will be able to access medium-
and long-term debt restructuring programs, according to a
statement from the Agriculture Ministry.
Companies
that have missed debt payments won't be eligible for the
program, Cortes said.
Debt
defaults broke the "financing chain of the overall sugar
sector. Several sugar mills were forced then to sell off some
stock to finance their current sugar crop," Cortes added.
Ministry
Website http://www.sagarpa.gob.mx
-By
Santiago Perez, Dow Jones Newswires; (525) 726 9152;
santiago.perez@dowjones.com
(END)
Dow Jones Newswires 16-03-01 |