Mexico Sen. OKs Bankruptcy Reform 
	Fri, 28 Apr 2000 14:09:20 -0400


Via NY Transfer News * All the News That Doesn't Fit

Mexico Sen. OKs Bankruptcy Reform

The Associated Press
Thursday, April 27, 2000; 9:34 p.m. EDT

MEXICO CITY - In a move that analysts say will help end Mexico's
5-year-old domestic credit drought, the Senate approved Thursday a lower
house bill to reform antiquated bankruptcy laws that banks said prevented
new lending.

The new bankruptcy law replaces a 1940s code that allowed businesses to
delay payments to creditors for years, with no interest-rate penalty for
missed payments.

The new code, already approved by the Chamber of Deputies, will go into
effect later this year. Mexican banks, citing legal problems in collecting
on debts, have offered few new loans to businesses and consumers here
since the 1994 peso crisis.

Copyright 2000 The Associated Press
 
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