The Inter-American Development Bank (IADB) on Monday granted Mexico a loan of 600 million U.S. dollars to help it boost a social welfare program, said the Finance Ministry.

The program, called Opportunities, gives the poorest families free food and medical services providing they take their children to regular health checks and keep them in school.

The 25-year loan will finance studies on the program's effect on urban families. Mexico will pay an interest rate based on the benchmark London Inter-Bank Office Rate (LIBOR) after a two-year grace period.

Monday's loan is the second disburse of an IADB program to help Mexico promote its social welfare. The first 200 million dollars went to a pilot program for poor urban areas in central and northern Mexico.