Mexico is planning to grant loans to commercial sectors that could be hit hardest by the coronavirus, as the economy faces its biggest challenges since the 2009 crisis.
Development bank loans would be granted to counteract liquidity shocks for tourism, restaurant and air travel sectors, Deputy Finance Minister
Companies that already have development bank credits may be allowed a grace period, or to refinance, if they’re facing liquidity problems, Yorio said Thursday on the sidelines of Mexico’s banking conference in Acapulco.
“We can give loans from development banks. We are already working with Nafin to design credits,” he said, referring to
“Another option may be tax incentives, but we have to study them well,” he said.
The increasing risks of a pandemic-driven
“We are in an extraordinarily complex situation,” Finance Minister
The Finance Ministry will revise its above consensus 2% growth forecast in early April.
During his interview, Yorio also said that Mexico will have to cut government spending as a depreciated peso and falling oil prices impact finances. That’s necessary despite Mexico’s lucrative oil hedge and even as a slump in gasoline prices is allowing the government to completely remove its fuel subsidies, he said.
Yorio said that back in 2009, when Mexico’s economy was battered by the H1N1 outbreak, restaurants, cinemas, tourism companies and airlines were most deeply affected. That’s where government stimulus will be directed most this time, he said.
“What we are asking of all banks is that they are open to refinancing, to define products to provide liquidity to companies.”
(Updates with Herrera comments in seventh paragraph.)
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