Nafin wants US$180mn in federal funding for 2004

Mexican small business development bank Nacional Financiero (Nafin) needs 2bn pesos (US$180mn) in federal funding to meet the needs of its clients next year, a 10-fold increase from this year's budget of 200mn pesos, Nafin CEO Mario Laborin told local press. "Development entities need more federal dollars to be able to offer cheaper [financial] products to more companies," Diario de Monterrey quoted Laborin as saying. "And that is something we don't have in Mexico." Laborin said that duriing his three year's at the helm the bank has gone from a loss making enterprise to one that will report profits of 100mn pesos this year. As part of its streamlining process in the last three years, Nafin has shed more than half its workforce and sold US$50mn in property. Mexico's federal government operates seven financial institutions: Nafin, public works bank Banobras, exim bank Bancomext, rural development bank Banrural, armed forces bank Banjercito, savings bank Bansefi, and mortgage bank Sociedad Hipotecaria Federal. Nafin is one of the country's largest banks with assets of 297bn pesos and a loan portfolio of 180bn pesos at the end of June 2003. Nafin has a rbranch network of 37 offices and employs about 1,050 people.