Our portfolio of Mexican Loans was transformed from a one consisting mostly of a few first-level banks, to one comprised of a wide variety of medium sized borrowers, across several industries. Bladex demonstrated its priority to continually improve the quality of the portfolio through geographical diversification, aimed predominantly at countries with superior risk profiles. At the same time, the financing of foreign trade transactions still represented the majority of the total credit exposure.

Despite strong competition, the consolidation of the product base and offerings was a source of portfolio growth and diversification. In 2007, Bladex's Structuring Financing and Vendor Financing capabilities were strengthened, but most importantly, our Leasing activity reached critical mass, generating revenues of $2.7 million with a volume of transactions exceeding $100 million. New initiatives were also developed, which will allow for continued expansion of the product base and diversification of the source of revenues, focusing on the generation of commissions. A joint venture agreement was signed with Fimbank to develop Factoring in the Region; work on this product is slated to start in Brazil, with plans to eventually expand this product to other countries of the Region.