What is "fobaproa"

Fobaproa (Fondo Bancario de Protección al Ahorro; "Banking Fund for the Protection of Savings", in Spanish) is a contingencies fund created in 1990 by the Mexican government and the then dominant political party PRI to attempt to resolve liquidity problems of the banking system in that country. Fobaproa was applied in 1995 during the economic crisis to protect all Mexican banks from going bankrupt, and thus destroying the Mexican Economy. However, a number of corruption cases involved in the action have been discovered and since then, it has become an object of criticism by members of the opposition. It was replaced, in 1998, by Instituto para la Protección al Ahorro Bancario (Bank Savings Protection Institute), current Mexico's deposit insurance agency.