MED & SMALL IND III

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The Third Small and Medium Scale Industrial Development Project will support Mexico's integrated program of assistance to small and medium industry by providing credit and technical assistance to enterprises for maintaining or expanding production and employment levels. NAFINSA will channel the loan's proceeds in pesos to the individual trust funds and other participating institutions. FOGAIN, one of these institutions, will provide credit through financial intermediaries to finance fixed assets including equipment and common service facilities, and working capital requirements. FOMIN will make minority equity investments and loans convertible into equity, to help finance fixed investments and permanent working capital. FIDEIN will provide credit for infrastructure works in industrial estates. NAFINSA and specialized institutions will provide technical assistance, including training. About 10,000 new jobs will be created and a further 20,000 - 30,000 jobs preserved in the 3,000 firms that are expected to be helped under the project.