TITLE

A MEXICAN PROGRAM FOR PAYMENT OF DOLLAR LIABILITIES

AUTHOR(S)
Bacon, Leonard A.; Melcher, Trini U.; Wong-Boren, Adrian
PUB. DATE
July 1986
SOURCE
FE: The Magazine for Financial Executives;Jul/Aug1986, Vol. 2 Issue 7/8, p35
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
The article focuses on the Program for Coverage of Exchange Risks managed by the Exchange Risk Fund in Mexico, known by its Spanish acronym FICORCA (Fideicomiso Para la Covertura do Riesgos Cambiarios) in order to meet the foreign currency liabilities. The program's essential element is to offer dollar-peso exchange risk coverage of principal and interest for certain debts due in hard foreign currencies. A general description of a couple of the specific sub programs will explain how FICORCA functions. From a Mexican debtor company point of view, the FICORCA system appears to be an attractive option. Qualifying companies are granted credit in pesos as well as having dollars made available at the controlled rate of exchange.
ACCESSION #
15090892

 

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