SHCP Sees ‘Sustainable Reform’ for Financial SectorBy MBN Staff | Fri, 11/20/2020 - 11:52
Deputy Minister of Finance Gabriel Yorio González said during a conference yesterday that sustainability and gender equality are two of the government’s overarching, long-term plans for the financial sector.
Minister Yorio spoke on the second day of the 48th Convention of the Mexican Institute of Finance Executives and explained that offer and demand would need to be stimulated for this to happen. A reform of some sort would be the way to do it, reported El Economista. “We would like Mexico to begin to mobilize capital in the medium and long term to move more quickly toward a green growth path, for banks to disseminate information on risks associated with climate change but also to evaluate the impact of climate change on their projects and portfolios,” he said.
The Mexican government recently achieved a historic first when in September, it issued the world’s first sovereign bond aligned to the UN’s objectives on sustainability. “We have finished issuing the first sustainable bond in the world that is connected to the UN’s sustainable development goals. These objectives aim to acknowledge the policies that countries have to reduce inequality, promote financial inclusion and reduce the gender gap,” said Yorio.
Roberto Ballinez, Senior Executive Director of Public Finances and Infrastructure at HR Ratings, told MBN in a recent interview that the financial sector could play a major role in preparing the country for climate change but that this must be spearheaded by the national and state governments. “The Mexican bond was placed in the international market on Sept. 14. But when we talk about the national market, only the Mexico City government has delved into this. Recurrent issuers are mostly from the private sector and development banks. Ideally, it is the development banks and governments that should be the first to act in new market openings like this because they are better suited to take on that risk,” he explained.
Read the full interview with Roberto Ballinez here.
Yorio also said the gender gap in the financial sector must be addressed. Among the efforts made by the government to address the issue is an initiative sent to Congress to force bank committees to have a minimum of 30 percent female participation.