Mexico May Extend Relaxed Bank Credit Rules to Help Economy Grow

Mexico’s finance ministry is considering extending relaxed banking credit rules to help its battered economy recover, a top official said on Wednesday, after it presented an austere 2021 budget that leaves little room to maneuver, Reuters reported. Deputy Finance Minister Gabriel Yorio said the ministry was in talks with the banking industry and the central bank about the possible extension until next year of the temporary measures designed to avoid defaults and loss of collateral. The measures were introduced earlier this year as part of the government’s strategy to reduce the impact of the coronavirus containment in the country, which is still scarred by memories of the 1995 “Tequila crisis,” when Mexicans lost homes and savings. Yorio said he hoped an extension could be announced within a “couple of weeks,” while suggesting the facilities could be restricted to certain sectors of the economy to limit risks to the financial system. Read more