Winter Garden Today

The North American Development Bank secured a significant commitment for increased financial support after the U.S., Canada and Mexico trade pact received approval, ending years of waiting.

The San Antonio-based bank, started by the U.S. and Mexican governments in the 1990s, is slated to receive $900 million in capital funding and $5.1 billion in loan guarantees after negotiating a schedule with both governments.

“NADBank has partnered with local governments, municipalities and private companies across South and West Texas on several multi-million-dollar projects to improve the lives of those who live and work in these communities,” Rep. Will Hurd (R-Texas) wrote on the Texas GOP Vote website on Feb. 11.

The bank provides funding for various projects on both sides of the U.S.-Mexico border, including power, water treatment and transit.

“NADBank has also been a key driver of our bilateral relationship with Mexico,” Hurd wrote. “By financing projects on both sides of the border and having a team consisting of representatives from both nations, the NADBank has aided in strengthening the dialogue between the United States and Mexico.”

The U.S. Congress agreed in 2015 to increased funding, but it was never authorized because of gridlock, according to the San Antonia Express-News.

The bank’s managing director, Calixto Mateos-Hanel, believes the financial institution will increase the number of loans and grants it awards once the funding is fully authorized, according to the Express-News.

Since the bank is backed by the U.S. and Mexican governments, it can issue loans with low-interests rates to project borrowers. The low-interest rates and additional funding will allow the bank to support more projects.

“Now that the USMCA is across the finish line and NADBank’s mission is reauthorized the millions of people who live in and around the border region will experience the benefits of smart policies and cross-border cooperation,” Hurd wrote. “By leveraging a combination of public and private funding the institution has been able to make a big difference.”