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News Article

Banks Announce Relief Measures for Credit Holders

By Gabriela Mastache | Thu, 03/26/2020 - 10:28

The Mexican banking sector is taking matters on its own hands by creating a relief strategy for SMEs and individuals. The Mexican Banking Association (ABM) sent the National Banking and Securities Commission (CNBV) and the Ministry of Finance and Public Credit (SHCP) a document with suggestions for helping clients mitigate the financial risks that the COVID-19 pandemic has brought.

CNBV announced on Wednesday that following on ABM’s recommendations, the commission would implement a series of measures that would support credit holders.

As part of these measures, CNBV mentioned that credits can be partially or totally postponed up to four months, with the possibility of extending this for two more months. This freeze measures will be applicable as long as the credit has a status of validity as of February 28, 2020.

Credits that are contemplated in these measures are house mortgages, individual revolving and non-revolving credits including auto loans, personal credits, payroll credits, credit cards and microcredits. The measure also includes commercial credits taken by businesses in all their different modalities, including agricultural credits.

However, according to Arturo Herrera, Minister of Finance, credit holders will need to reach an agreement with their banks that allows them to differ the credit payments. Banorte, HSBC and Scotiabank were among the first to announce measures for supporting their clients. CNBV announced that it is also working to generate similar measures that include other financial intermediaries, such as savings and loans unions and credit unions.

These measures are temporal. However, this is not the first time they are implemented. Similar measures have been issued following natural disasters and were last implemented in the past change of governmental administration, when government workers were impacted by payroll reductions.

 

The data used in this article was sourced from:  
El Economista, El Financiero, El Universal
Photo by:   Pixabay
Gabriela Mastache Gabriela Mastache Senior Journalist and Industry Analyst