Multilateral action is heating up in Latin America. Just a couple of weeks following news that the Inter-American Develop -ment Bank (IDB) would likely provide a liquidity facility in a Mexican RMBS (see ASR 4/19, p. 1), a unit of the same bank group is advancing on another front. The Multilateral Investment Fund (MIF) intends to become a first-loss investor as a way to enhance deals backed by diversified payment rights (DPR), which are a common sight in the cross-border arena.

"We would take a subordinated tranche, being the first in line not to get paid in the unlikely event of total stoppage of remittance flows," said Nathaniel Jackson, a representative from the Investment Division of the Fund.

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