Credit taps open for MSMEs

The Mexican government and banks have agreed to open the door to cheap credit for the country's micro, small, and medium-sized businesses.

They agreed to increase the flow of credit to 30% for that segment of productive units, with the support of development banks, guarantees of 70%, and the relaxation of regulations.

The goal is to increase credit flow by 3.5% annually until the target is reached.

It is a structural change that will gradually advance to boost the country's majority productive sector, formalize it, and integrate it into national development.

This is not an exercise in oversight, but rather in financial inclusion, government representatives and bankers assure.

Among the deregulation measures, the goal is to no longer require MSMEs to provide financial statements or tax returns, although they will still be required to register with the SAT.

Optimistic economic photography

It was the first Banking Convention attended by the President of Mexico, and there were no scoldings or confrontations with the bankers.

The controversial issue of Fobaproa, which has caused a stir in recent days, was not even invoked.

The President of Mexico presented a favorable diagnosis of the Mexican economy.

He said that he has reacted in an extraordinary way to the international circumstances.

The well-being of the Mexican people is improving; poverty has decreased.

Mexico doesn't just want economic growth, but fundamentally shared well-being.

He spoke of the historic level of international reserves, the extraordinary level of revenue collection of 9% above that of 2024.

The commitment to reduce the deficit from nearly 6% to 3.9%, equivalent to 700 billion pesos.

By that amount, the Federation's Expenditure Budget will be lower and he warned that even so, investment is growing.

He emphasized economic stability, controlled inflation, and an exchange rate below 20 pesos per dollar.

And the reasonable balance between debt and GDP compared to developed countries

He stated that this year, 800 billion pesos will be channeled into welfare programs, which will provide permanent access to the country's domestic market.

For his part, Finance Secretary Edgar Amador presented a very positive outlook for the Mexican economy.

He said it is solid, with macroeconomic stability and a dynamic market, healthy public finances, and favorable conditions for companies to continue investing.

He asserted that in the first quarter of 2025, the Mexican economy showed moderate dynamism and explained that this was mainly due to temporary exogenous factors and an expected slowdown in previously expansive sectors.

He insisted that the Mexican economy continues to expand.

He also highlighted the positive results observed in public finances, with a notable increase in budget revenues, up 11 percent.

Banking muscle

The bankers boasted about the strength of commercial banking.

With investments of nearly 25 billion pesos annually in technology, and a capitalization level far exceeding the regulatory minimum: 19.9%, compared to the 10.5% required by regulation.

The delinquency rate is stable at just 0.2%, the liquidity coverage ratio is 347%, three times the regulatory minimum of 100%, and the reserves are 156%, equivalent to 1.6 times the non-performing portfolio.

The strength of banks will help cushion the economic slowdown

Bank deposits amount to 9 billion pesos.

The deposit balance has increased by 134% in the last 10 years.

The bankers, led until now by Julio Villarreal, demonstrated negotiating skills and made progress with the government on an agreement that seeks to first analyze and work together across seven different groups to define the terms and conditions for meeting the objective and ensuring timely follow-up.

The coordinator of the Business Council, Altagracia Gómez, has played a leading role in promoting this agreement and is tasked with monitoring its implementation.

This is a good effort by the government and the banks. We'll see how far it progresses. Time will tell.