Election Results Will Impact Mexico’s Financial CertaintyBy Sofía Hanna | Thu, 04/15/2021 - 18:14
Jorge de Lara Novella, Vice President and General Manager for GCS American Express Mexico and Latin America and Expert Contributor of MBN, shared information on how to use accounts receivables to accelerate cash flow. For all businesses and companies, regardless of size, getting paid sooner and pushing forward their payments is crucial for them to have positive cash flow and working capital to manage and grow their business. Strained cash flow can lead to an inability to immediately meet financial obligations, which can, in turn, push companies toward unnecessary debt, stymying their sustainability as a business. Some of the points he develops include accelerating your accounts receivables to fund operations and growth, managing past-due payments and optimization and technological solutions. “Having the right visibility and control of the flow of such transactions can help small businesses successfully navigate through volatile times and build a more resilient, more profitable and ultimately a long-term sustainable business.”
Interested in more? Here are the week’s major headlines in Finance!
- 2021 is an election year in Mexico. Any action that affects the Electoral National Institute (INE) could affect the perception people have of the country’s risk and credit rating, explained Carlos Serrano, Chief Economist BBVA. Autonomous institutions give investors certainty about a country, but the country must have an autonomous organism that oversees and organizes elections. Lisa Shineller, Analyst at S&P, believes that Banxico’s autonomy offers higher levels of certainty and a stronger institutional framework, reports El Economista. S&P is waiting to see how the Mexican government handles these elections before evaluating Mexico’s rating.
- According to the IMF, Mexico’s debt could increase to over 60 percent of the GDP between 2021 and 2026. Debt levels around the world have increased following the pandemic, mainly due to the many healthcare measures countries took to deal with COVID-19. In Mexico, the debt increase is also caused by an 8.5 percent contraction in the economy, according to previous figures from INEGI. This is the largest drop in GDP since the Great Depression.
- In a recent MBN interview, José Carlos del Río, Country Manager of Sonect Mexico, talks about the company and its plans to make cash withdrawals handy for everyone. He talks about the company’s main objective, which is creating the largest digital ATM network in Mexico. Sonect is a digital ATM platform whose goal is to simplify access to financial services for anyone, anywhere. In 2019, it became the single largest ATM network in Switzerland.