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Mexico launches $1.2-billion fund to help home builders

A view of houses in the Roma neighbourhood in Mexico City.

Carlos Jasso/The Globe and Mail

Mexico launched a 15-billion peso ($1.18-billion U.S.) fund on Wednesday to help the country's home builders, whose shares have declined due to concern over a government policy to stimulate inner-city, high-rise social housing.

Many home builders have large land holdings outside cities.

"The beneficiaries of this guarantee program will be the efficient developers with healthy balance sheets and doable projects," Deputy Finance Minister Fernando Aportela said in announcing the plan.

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The announcement had an immediate effect on home builders' share prices.

Urbi was up nearly 15 per cent, while Geo rose more than 10 per cent. Homex added 7.9 per cent.

The Habita index, which groups home builders, added more than 8 per cent.

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