MEXICO CITY - Mexico will allow 100% foreign ownership of existing financial companies in the country, including banks, Mexico's foreign trade bank Bancomext outlined in a summary of the anti-inflation and wage control "pacto" agreement.

"The financial authorities will allow further foreign investment in existing financial intermediaries up to 100% of capital," Bancomext said.

"This measure will contribute to ease concerns on the financial strength of those intermediaries."

The "pacto" agreement between the government, business, and labor was agreed to in the early hours of the morning Tuesday and was scheduled to be formally signed by President Ernesto Zedillo the same day.

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