Business & Banking

Business & Banking

Mexico

Citibank Reaches Accord with MexicoCitibank and Mexico's Institute for the Protection of Bank Savings (IPAB) settled their dispute over a controversial $2.5 billion debt prepayment made by IPAB to Citibank in May. IPAB's forerunner, Fobaproa, created to bail out Mexico's collapsing banks in 1995, issued a promissory note to Citibank to help it finance its acquisition of Banco Confía from the government in 1998. Interest income of $120 million a year on Fobaproa's high-yielding promissory was intended to help finance Citibank's restructuring of Confía (see Citibank's New Start").  Citibank sued the government while simultaneously negotiating with the outgoing administration

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