MEXICO CITY, Oct 9, 2008 (AFP) - The Mexican president on Wednesday proposed a 53-billion-peso (4.3-billion-dollar) emergency plan to confront the international financial crisis after the Central Bank moved to prop up the peso.

The Program to Promote Growth and Employment 'is not a financial rescue, but will focus on driving internal motors to boost the Mexican economy,' Felipe Calderon told reporters at his Mexico City residence.

The plan, which needs congressional approval, is based on 'growth in public spending, particularly on infrastructure,' Calderon said.

It includes the construction of a new refinery for state oil company Pemex, a support program for small- and medium-sized companies and a loosening of regulations to promote investment.

'Instead of restricting credit, we have to seek to expand it, instead of reducing infrastructure spending ... increase it to boost growth and employment,' Calderon said.

The Mexican peso plunged Wednesday to a record low, but rose again after the Treasury Department announced an extraordinary auction of 2.5 billion dollars.

Mexico's economy, closely tied to its northern neighbor, had suffered few bumps from the global crisis until the peso's fall.