Banco de Mexico’s SME support. Responses to COVID-19
Given the significant issues caused by COVID-19, Banco de Mexico decided to intervene in the national economy. Through economic policies, they would attempt to buffer the detrimental effects in the country’s economic and financial stability, as well as in the continuity of Mexican companies.
Published on April, 2020
Ana Karen Tello & Jorge Juarez
The decision to act arises from the scant of null response of the Secretaría de Hacienda (Mexican internal revenue ministry) to promote the economy and mitigate the effects resulting from the pandemic. The first substantial measure was to try to generate greater levels of certainty and stability for the affected companies by injecting more than 750 billion pesos, which represented 3.3% of the GNP, into the national economy.
Banco de Mexico would look to intervene in a straightforward manner in the economies of families and businesses through the commercial banks. The new debt and credit policy presented to the commercial banks expects to facilitate an easier and more efficient access to financing for the small enterprises that require such backing to guarantee their survival through the pandemic.
The government has done a poor job of protecting businesses, as well as pushing the economic recovery. The Banco de Mexico establishes that the financial backing is necessary given the significant contraction of the economy. The support of Banco de Mexico is like that given in other countries to avoid great declines in the country’s GNP.
(PDF Article Only Available in Spanish)
Banco de Mexico would look to intervene in a straightforward manner in the economies of families and businesses through the commercial banks. The new debt and credit policy presented to the commercial banks expects to facilitate an easier and more efficient access to financing for the small enterprises that require such backing to guarantee their survival through the pandemic.
The government has done a poor job of protecting businesses, as well as pushing the economic recovery. The Banco de Mexico establishes that the financial backing is necessary given the significant contraction of the economy. The support of Banco de Mexico is like that given in other countries to avoid great declines in the country’s GNP.
(PDF Article Only Available in Spanish)
Download
PDF Article
Related Capabilities Accelerator Capital Solutions Operations Organization & Transformation
Related Insights
The growth potential of emerging economies
Economic power has spinned around countries in Asia and emerging economies, promising to transform them in a few year in the new players of world commerce. The growing economic power of emerging economy countries was driven in the beginning by the intensity of their production processes, together with the low wages paid within their organizations.
Globalization: An interconnected business world
Globalization is the process and strategy of businesses towards their expansion and operation in new markets. Activities abroad are boosted by new strategies and process transformations. The commercial sector and economic entities connectivity present a series of intangible benefits, driving the enterprise business expansion. Here, we will explore the main indicators of an interconnected and globalized world.
Strategies to bolster the Supply Chain
The supply chain includes the strategic and integral process of organizations in the creation of a product, this being comprised of relationships between various entities. The production and profitability of organizations will depend on the level of efficiency of their supply chains. In every sector, the supply chains are the cornerstone of company productivity. However, these have shown to be vulnerable to disruptive events, risking operational continuity.
