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Mexico's Fovissste to use mediators to recover nonperforming loans

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Mexico's Fovissste to use mediators to recover nonperforming loans

Mexico's federal mortgage lender Fondo de la Vivienda del Instituto de Seguridad y Servicios Sociales de los Trab, or Fovissste, has announced a nationwide debt restructuring program as it seeks to recover nonperforming loans, El Economista reported.

Fovissste plans to launch the program in the state of Puebla where it signed a contract with private debt mediators who will seek settlement agreements with debtors without having to use courts, the fund's head, Luis Antonio Godina Herrera, told the publication.

The executive commission of the federal mortgage lender unanimously approved a motion to seek to improve Fovissste's credit situation by the use of private mediation in the restructuring of debts, according to Godina.

Fovissste is a public housing fund of the Institute of Security and Social Services for State Workers.