Newspaper article St Louis Post-Dispatch (MO)

Nations OK Mexico Aid Package Group of Seven Approves U.S.-Led Bailout with `Total Satisfaction'

Newspaper article St Louis Post-Dispatch (MO)

Nations OK Mexico Aid Package Group of Seven Approves U.S.-Led Bailout with `Total Satisfaction'

Article excerpt

The world's seven leading industrial powers relented Saturday and gave their blessings to a U.S.-led $50 billion rescue package for Mexico.

After two days of talks, finance ministers and central bankers from the United States, Japan, Germany, France, Britain, Italy and Canada expressed "total satisfaction" with efforts to aid Mexico.

"The support is unequivocal for the Mexican package," said Canadian Finance Minister Paul Martin, who was chairman of the meeting of the Group of Seven nations in Toronto.

Leading up to the two-day meeting, the United States and its European allies were at odds over the handling of a $50 billion bailout President Bill Clinton had proposed for Mexico.

As part of the deal, Clinton said that U.S. allies would contribute to a $10 billion loan package through the Switzerland-based Bank for International Settlements, and that the International Monetary Fund (IMF) would make a loan of $17.8 billion to Mexico.

With the Mexican peso and stock market plunging, Clinton on Tuesday abandoned a plan to get congressional approval for $40 billion in loan guarantees. Instead, he used his authority to promise $20 billion to Mexico from a little-known U. …

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