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individuals who are equally new to the industry – people that have little, poor or no credithistory.Most of these newly developed lending institutions are members of the MexicanAssociation of Specialized Financial Entities (AMFE), which encompasses two maintypes of non-traditional lenders: Limited Purpose Financial Institutions (SOFOL’s) andMultiple Purpose Financial Institutions (SOFOM’s). Most of the newest firms in themarket are SOFOL’s due to the inherently decreased credit risk present when theborrower’s specific activities are known and by law, they must convert to a SOFOM or atraditional lending institution within seven years.As of October 2009, the AMFE collective network of SOFOL’s and SOFOM’s has over7.5 million loans issued. Delinquency in consumer loans increased from 3% to 9% overthis period. The mortgage sector is the most affected by the financial crisis.Foreign-Exchange ControlsReturn to topThere are no controls on the transfer of U.S. dollars into and out of Mexico. This meansthat profits can be repatriated freely.U.S. Banks and Local Correspondent BanksReturn to topThere are many U.S.-based banks active in the Mexican market, particularly U.S.brokers and banks working with ExIm programs. The U.S. Commercial Service Mexicomaintains a list of these banks. Please contact Sylvia Montano,Sylvia.Montano@trade.gov for more information.Project FinancingReturn to topBanks, investor groups, large institutional investors such as insurance companies, publicofferings of bonds, and other capital market instruments often provide financing. Suchfinancing is in its infancy in Mexico as the Government of Mexico (GOM) has previouslybeen the owner of these types of projects. The financing required by the GOM has beenhandled either through large international loan syndication direct to the federalgovernment or its operating entities or through multilateral credits.Mexico has entered a new era in granting concessions for seaports, airports, railroads,satellite communications, power generation plants, and natural gas distribution systems.In general, Mexican and foreign firms that win bids and tenders need to finance majorpurchases of both equipment and services.U.S. ExIm Bank http://www.exim.govThe Export-Import Bank of the United States (ExIm Bank), an independent agency of thefederal government, offers various short, medium and long-term export finance andinsurance programs. Of specific interest to U.S. exporters are the guarantees formedium-term loans to foreign buyers of capital equipment. Most loans are made by U.S.banks with ExIm Bank’s guarantee. ExIm has approximately $7 billion USD in exposurein Mexico making it one of ExIm Bank’s top markets.