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Weekly Roundups

Mexican Economy Stagnant; 2022 Financing Plans Unveiled.

By Emilio Aristegui | Thu, 12/23/2021 - 17:12

Mexico is focusing on its financing plan for 2022. Meanwhile, an IMEF report highlighted that the country’s economy is entering a major slowdown after recovering from the 2020 pandemic.

Banxico completed a payment of US$2.4 billion worth of bonds this week.

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SHCP Announces Financing Plan for 2022

The Ministry of Credit and Public Finance (SHCP) announced this week the annual financing plan for the coming year. “In 2022, the Federal Government will prioritize placement in the local market and will continue to develop the market for instruments linked to Environmental, Social and Governance (ESG) criteria that offer the investing public greater transparency in budgetary spending and serve as reference for public and private companies to access the financing of sustainable funds,” read SHCP’s press release. 

Banks Demand Transparency

The recent fintech growth in Mexico is leading banks to ask authorities to level the playing field. Fintech’s Total Annual Cost (CAT) has been the main focus, with banks asking for more transparency with the popular indicator. Daniel Becker, President, Association of Banks of Mexico (ABM), highlighted the benefits of fintech’s in Mexico and its progress, while adamantly suggesting that banks must ‘step up.’

Retail Investor Boom is Here

Sergio Jiménez, CEO and Co-Founder, Flink, explained the recent retail investor boom as innovation and disruption evolve. “Contrary to what some might think, Latin Americans are ready to be investors. They are enthusiastic and curious about the new financial products now within reach, and they understand the value of investing, instead of just spending their money,” said Jiménez. After years of researching, testing and overcoming challenges, the financial sector is now providing adequate tools to serve investors.

Bondes D Payment Complete

Banxico announced the advanced payment of Bondes D worth up to MX$50 billion (US$2.4 billion). “Simultaneous Bondes D purchase operations by the Bank of Mexico and the placement of Bondes F by the Federal Government promote the healthy development of the local financial market, by increasing the placement of such securities variable rate government linked to the new Interest Rate Interbank of Equilibrium within 1 day,” stated Banxico’s press release.

Stagnation in Economy: IMEF

A report by the Mexican Institute of Finance Executives (IMEF) indicates that the Mexican economy has reached a severe stagnation after indicators suggest a slowdown. While inflation reached its highest levels in two decades, Banxico was pressured to take measures to promote economic stability.

The data used in this article was sourced from:  
MB, BANXICO, SHCP, IMEF
Emilio Aristegui Emilio Aristegui Junior Journalist and Industry Analyst