The banking sector demands legal certainty for investment – El Financiero
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One of the main concerns in Mexico is low investment, to which is added the lack of rule of law, because in the face of uncertainty arising from the implementation of various reforms or laws, it also becomes a factor that keeps investments away, agreed by the managers of the major banks in the country.
Under the 85th Banking Agreement starting today in Acapulco, the directors demanded more legal certainty so that investments could return to Mexico faster and especially in the long term.
Eduardo Osuna, Director General of BBVA Mexico, considered that if resources are not allocated at least 25 percent of GDP, the country is doomed to grow a little.
He pointed out that the growth engine is private investment, but the authorities need to give entrepreneurs more certainty so that they allocate more resources, and added to this, confidence must be given that there will be sufficient electricity, correct costs, and if it is. Continuous.
There are certain things that will determine investment decisions made by people who are residents of Mexico, and by foreign investors. He said in an interview with El Financiero:
The director of BBVA Mexico, said that certainty should be given at the three levels of government and not just at the federal level, since in terms of security it is more related to a local mandate.
“We see Mexico as a country that has a really great future. We invest, we registered in 2020, we registered in 2021 and we registered in 2022, we are investing high levels of capital in terms of physical investment, branches, ATMs, transfer of some business issues in Territory and then the technological part,” he said. .
Manuel Romo, Managing Director of Citibanamex, agreed that investment should be very careful, “We have commented publicly on it, the issue of investment is a necessary issue for economic growth, it has already experienced declines and contractions versus other years that we have to attend.”
Greater economic growth is necessary, said Daniel Becker, president of the Mexican Banks Association (ABM), because this allows credit to grow up to 3 or 4 times more, and greater growth in finance has been shown to correlate with improved well-being for the majority.
In the opinion of Marcos Ramirez, Banorte’s general manager, the rule of law is his biggest concern for the country today, because that allows things to work well and that “the floor is even so that we compete and let us compete,” he noted.
You have to take advantage of the attractions
Geographical location and connection to the United States are important elements that many executives have highlighted as attractive, and they are wasted.
Romo pointed out that there are conditions offered by the state to attract investments. “There is an opportunity that we must take advantage of as Mexicans, as businessmen, as banks, as a country, now the window is open and we have to take advantage of it, attracting the factories that are being installed here and that have come from elsewhere because of the pandemic, it is the entire production chain that can arrive and with it the investments.”
He said that what worries him about economic matters and we should not lose sight of is inflation, because it is an unexpected phenomenon, as there is a change in the speed between supply and demand in different segments and countries.
However, Julio Carranza, Vice President of the Asian Financial Bank, emphasized that Mexico also has positive aspects: sound public finances, restoration of formal employment, independence of the Bank of Mexico and an adequate monetary policy, which will make inflation, which is currently a challenge, return to the required levels.
“Of course there are still clouds on the road, but I am an optimist who believes that everything will turn out well. Mexico is a great country, with great strength and we will continue to move forward despite all the things that can happen in the world. I think the economy is going to see an exciting recovery Interesting once this whole situation is over,” he noted.
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