In a conference held by Moody's Investors Service in Mexico last week, Banco Nacional de Mexico (Banamex), Mexico's second largest bank, introduced its plan to work with the federal government of Mexico to establish a transaction that resembles a securitization of tax receivables.

The federal government has been working to create a master trust in which the Secretaria Haciendo y Credito Publico (S.H.C.P), the Ministry of Finance, will take a portion of the tax revenue that would normally go to the state and place it in a master trust. The remaining amount would be transferred to the state treasuries and from that amount, the state would share a portion of the received revenue with the local treasuries.

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