The time has come for New Mexico to make the bold step of taking control of its own state finances. New Mexico loses up to half of the money it spends on debt service in interest payments to big banks. Let’s bring that money home by creating a public bank.
A public bank is a financial institution owned by the state of New Mexico that finances
New Mexico infrastructure projects and small businesses, clean energy, affordable housing, and many other economic development projects that need Local Economic Development Act (LEDA) loans, through participation loans with community banks and credit unions. The LEDA loans can be enhanced with public bank loans to support local economic development. Instead of selling bonds to out-of-state banks and investors, a public bank can replace the need for the issuance of bonds and help New Mexico by bringing the debt service payments back to New Mexico, as public bank income, and offering lower interest rates. A simple $50 million in capital can generate as much as $500 million in funds to leverage the projects we need.