William F. Stutts
1. Spending Measures (Budget Allocations)
The President of Mexico has advocated providing a one-time doubling of pensions for older citizens, but the program does not appear yet to have been implemented.
https://www.milenio.com/politica/amlo-pago-pension-adultos-mayores-adelantara-coronavirus (18 March 2020)
https://assets.kpmg/content/dam/kpmg/mx/pdf/2020/03/Facilidades-contribuciones-locales-covid-19.pdf
Otherwise there is not in place any government funded business rescue or support program. The President of Mexico has indicated in a speech that there is about USD 10 billion (MXN 250 billion) that the country can access to alleviate the effect of the crisis.
2. Tax Measures (Deferral of Payroll Tax Obligations, Extensions of Tax Filing Deadlines)
Many states have deferred tax filing deadlines and tax payments until the autumn.
A compendium of the information, by state, is at https://assets.kpmg/content/dam/kpmg/mx/pdf/2020/03/Facilidades-contribuciones-locales-covid-19.pdf (in Spanish)
3. Subsidies to Preserve Jobs, Employee Benefits, Food Assistance
N/A
4. Public Loan Guarantees and Expansion of Loans to Businesses
None announced, but see “measures to support flow of credit below” for bank activities.
5. Student Loan Relief
N/A
6. Insolvency Law Relief
N/A
1. Reduction of Interest Rates
Interest rate target established by the Bank of Mexico was cut to 6.5% on March 20; more cuts are expected by none announced https://www.fxstreet.com/news/mexico-central-bank-cuts-key-interest-rate-by-50bps-mxn-steady-202003201908.
The Peso has fallen significantly against the US Dollar, despite increased intervention by the Bank of Mexico in the currency markets. https://www.banxico.org.mx/publications-and-press/other-announcements/%7BE626A744-436D-2495-0969-3582C9571361%7D.pdf
A USD 60 billion swap line is in place between the Bank of Mexico and the United States Board of Governors of the Federal Reserve System. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#M
2. Expansion of Central Bank’s Holdings of Government Bonds
N/A
3. Other Measures to Support Flow of Credit
No public funding announced, but relaxation of bank collection rules has been announced by the bank regulator CNBV. https://www.gob.m x/cnbv/prensa/16-2020-com unicado-conjunto ; http://dof.gob.m x/nota_detalle.php?codigo=5590567&fecha=26/03/2020
Banks have been authorized by the bank regulators to grant payment holidays of up to 4 months. CNBV Bank regulatory reporting requirements and reserves have been relaxed by CNBV and banks encouraged to provide relief or support.
A swap line with the United States Board of Governors of the Federal Reserve System has been put in place and has been drawn down https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#M
4. Suspension of Foreclosures/Evictions
N/A
5. Reductions/Suspensions of Mortgage Payments
Greater flexibility is encouraged by bank regulator CNBV, and the fund for workers housing (Infonavit) has announced a moratorium on mortgage payments for a limited period.
6. Asset Purchases (Liquidity Facilities, Purchase of Private and Public Sector Securities, Acquiring Equity of Larger Affected Companies)
N/A
7. Exchange Rate Adjustments
None announced; the Peso floats. A swap line with the United States Board of Governors of the Federal Reserve System has been put in place and has been drawn down. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#M
1. Social Distancing
Gatherings in excess of 50 people (the official information from the Ministry of Health has been congregations of 100 persons or more) in public spaces are now prohibited.
https://www.dof.gob.m x/nota_detalle.php?codigo=5590339&fecha=24/03/2020 “shelter in place” is encouraged except for essential businesses. The older population is encouraged to stay indoors at home. Many of the federal offices, boards, and ministries have implemented official work at home, limited hours, and changes of schedules.
See e.g, http://dof.gob.m x/nota_detalle.php?codigo=5590173&fecha=24/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590057&fecha=20/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590173&fecha=24/03/2020;
https://www.galicia.com.mx/wp-content/uploads/Bolet%C3%ADn_Informativo_8_Covid-19.pdf
2. Closure of Public Places for Gathering
Public places not reported closed by federal authorities but gatherings in excess of 50 persons prohibited (the official information from the Ministry of Health is congregations of 100 persons or more). The City of Mexico City has closed many public places, and other cities are following a similar path.
Bulletin 20/2020 (22 March 2020);
https://www.eluniversal.com.mx/estados/coronavirus-cierran-playas-y-centros-turisticos-de-tamaulipas-por-covid-19 (in Spanish)
https://www.informador.mx/jalisco/Cierran-bares-casinos-y-salones-por-coronavirus-20200318-0027.html (in Spanish)
A question is pending whether the Archdiocese of Mexico will cancel public Holy Week observances.
3. Closure of Non-Essential Businesses
Most closures and holidays extend through April 17 (or until April 20). Many, determined on a local or state basis, but the Ministry of Health has made increasingly important recommendations and requirements. https://www.dof.gob.m x/nota_detalle.php?codigo=5590339&fecha=24/03/2020
Many, determined on a local or state basis, but the Ministry of Health has made increasingly important recommendations and requirements. https://www.dof.gob.m x/nota_detalle.php?codigo=5590339&fecha=24/03/2020
In Mexico City and other cities, non-essential businesses are to be closed https://www.jefaturadegobierno.cdmx.gob.mx/comunicacion/nota/acuerdan-gobierno-capitalino-y-alcaldias-cierre-temporal-de-actividades-y-establecimientos-por-coronavirus-covid-19
The energy sector remains an essential business. A limited federal employment holiday has been provided for that sector.
All proceedings before all major agencies and commissions of the federal government are suspended https://www.bakermckenzie.com/en/insight/publications/2020/03/mexico-suspension-of-activities-covid19
See, e.g.:
https://www.dof.gob.m x/nota_detalle.php?codigo=5589962&fecha=20/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590194&fecha=24/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590064&fecha=20/03/2020;
http://www.dof.gob.m x/nota_detalle.php?codigo=5590342&fecha=24/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590205&fecha=24/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590344&fecha=24/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590066&fecha=20/03/2020;
http://www.dof.gob.m x/nota_detalle.php?codigo=5590427&fecha=25/03/2020;
https://www.dof.gob.m x/nota_detalle.php?codigo=5590337&fecha=24/03/2020.
4. School Closures
Schools are closed through April 17, 2020. https://www.ktsm.com/news/juarez/mexico-orders-schools-closed-for-one-month-to-prevent-spread-of-covid-19/
In early March, Mexico with the assistance of the World Bank Group issued a USD 495 million-catastrophe bond. The bond appears to be related to natural catastrophes (hurricanes and earthquakes) that may not cover the novel coronavirus.
The United States has announced a closure of its border with Mexico, after consultation with Mexico.
https://mx.usembassy.gov/wha-press-guidance/.
After protests in Nogales (which faces the State of Arizona in the U.S.), that border crossing has been closed by Mexican authorities to pedestrian traffic and much of the vehicular traffic.
Mexico Shuts Down Nogales Border Crossing Indefinitely El Paso Times, March 31, 2020. It is reported that the Mexican borders with Arizona and Texas remain porous.
Guatemala has closed its border with Mexico. https://www.garda.com/crisis24/news-alerts/323391/guatemala-borders-to-close-for-15-days-from-march-17-update-4