Buddy, Can You Spare a Dime?

I´ve learned one thing about Mexican (and perhaps all Latin American?) life and that´s their concept of friendship. It is very far-reaching!! At least, I think it´s certainly different than how we would view it in the states.
A friend in Mexico can come to you, because you´re a friend (or a relative) and ask to borrow money. It might be a considerable sum...maybe several thousand dollars. If you have it, you give it to him automatically. No further questions asked. If you have it, but have other immediate plans for it, you might ask him what he needs it for. If it´s something urgent (medical expenses, for example), you balance his need with your plans and (probably) give it to him anyway. If it´s not so urgent, you open up to him your plans for the money and the two of you have a frank discussion over which need is greater and act accordingly.
If the borrower has a bad payback history, even though he´s your friend/relative, you lie and say you don´t have the money.
The underlying theory is that he will pay you back as soon as possible. It´s understood that it´s in your best interest to be generous to him because the day may very well come when you´ll have to hit him up for a loan. If he has already borrowed money from you, you can bet he´s going to bend over backward to find the money to lend to you when it´s your turn. It´s a form of social security.
If, God forbid, he doesn´t pay you back, then that´s the end of the friendship, and I´m told that some lifelong friendships break up for just this reason.
If the loan is not paid back, the "punishment" is the loss of friendship. There is no going to small claims court (if such a thing exists). There would be no "judgment" because he was a friend. The loan was something you were obligated to do because the two of you were friends. Besides, I´m told, you would not win in court because the loan was not in writing.
These "loans" happen frequently. Colleagues at work will hit each other up for $50 without giving it a second thought. Mexicanos live more more spontaneously than we gringos. If the night before, your colleague met up unexpectedly with some friends, it would be understood he would empty his wallet buying beers for them, etc. Today he´ll hit you up for $50 so he can make it to the next payday. On payday, he´ll immediately pay you back.
I have to confess, with my gringo background (and upbringing?), it just makes me cringe thinking friends or colleagues would hit me up frequently for petty loans. For me, it´s just downright uncomfortable. Is that just me? or is it our gringo way of life?
Okay, enough of this. I have to go borrow 50 cents to pay off the internet cafe.
Hasta luego!