MEXICO

Government to Bail Out Banamex: Mexico said it will take over $2 billion in bad loans from the country’s largest bank, Banco Nacional de Mexico, as part of a previously announced move. Banamex is the latest Mexican bank to hand off nonperforming loans to a government-financed insurance fund. Virtually all of Mexico’s banks have been hurt by the sharp rise in interest rates and the increased inability of customers to make payments on their loans. No. 2 Bancomer is scheduled to join the program later this month by turning over as much as $1 billion. Finance Minister Guillermo Ortiz said the rescue of Banamex, Bancomer and other troubled institutions will cost as much as $15 billion, a portion of which is coming from international lenders, including the United States. Separately, the International Monetary Fund on Friday approved Mexico’s economic program for 1996 and agreed to hand over another $1.6 billion in loans to the country.