The SHCP release Mexico’s 2024 Economic Package, which raises concerts due to the fiscal deficit, while it unveils its sustainable financing strategies. Meanwhile, Nelo and Paymentology partner to foster financial inclusion.
This is the week in finance:
Deputy Minister of Finance and Public Credit Gabriel Yorio has introduced the Sustainable Finance Mobilization Strategy (EMFS) to drive resources toward environmental and social initiatives. This initiative aims to meet international commitments on climate change and sustainable development, requiring an annual sum of MX$1.7 billion (US$99.6 million) by 2023, equivalent to 5.4% of Mexico's GDP.
Mexico's 2024 Federal Economic Package, released by the SHCP, has raised concerns due to its significant fiscal deficit, reaching 4.9% of the national GDP, a level not seen in decades. Despite stable outlooks from credit rating agencies, the persistent budget deficit and doubts about Mexico's financial management have raised concerns about the sustainability of its investment grade.
Card issuing and processing platform Paymentology have partnered with buy-now-pay-later platform Nelo to expand financial inclusion in Mexico by introducing credit services to previously unbanked individuals. Through its partnership with, Nelo will be able to launch its Tap to Pay solution through Google Wallet.
Mexico's Federal Economic Competition Commission (COFECE) has identified significant barriers to competition in the country's card payment processing market. The commissions paid between banks for card payment operations in Mexico average 1.36%, far higher than European nations at 0.2%.
Patricio Diez, General Director, Compartamos Banco writes this week for Mexico Business about how microfinance plays a crucial role in addressing financial exclusion among low-income segments in Mexico. He highlights how it impacts individuals, particularly women in their lives and promoting financial inclusion. Despite digitalization's potential to enhance financial inclusion, limited infrastructure in some regions remains a challenge. Nevertheless, microfinance continues to change lives by offering opportunities to achieve dreams and economic success.