Background on the Agreement and Its Relevance
In May, the Mexican Federal Government and the Association of Banks of Mexico (ABM) signed an agreement aiming to increase credit allocation for micro, small, and medium-sized enterprises (mipymes) in the country. This initiative is part of Plan México, which supports strategic sectors such as textiles and footwear, agroindustry, automotive, and electromobility.
Progress of the Agreement
According to ABM, as of August, 26.2% of mipymes have access to bank financing, up from 24.6% at the agreement’s signing – a 1.6 percentage point increase.
Emilio Romano, ABM president, highlighted that credit to mipymes has grown from 24.2% to 26.2%, nearing the target of 30%. Additionally, the number of creditworthy mipymes has risen from 255,000 to 269,000, a 3.9% increase.
Credit Portfolio and Interest Rates
The mipyme credit portfolio stands at 521,000 million pesos, growing at an annual rate of 7.6%.
ABM reported that interest rates for mipyme credits have been decreasing, averaging 14.40% in August compared to 15.55% at the agreement’s signing and projected at 16.10% in 2024.
ABM emphasized that Mexico has the most competitive interest rate among emerging markets when comparing spreads between mipyme interest rates and reference rates.
Collaboration with Development Banks
As part of Plan México, the National Financiera (Nafin) and Bancomext, in coordination with ABM, designed a guarantees program to boost mipyme credit. This initiative targets strategic sectors with a 120,000 million pesos credit portfolio, including textiles and footwear, agroindustry, semiconductors, consumer goods, aerospace, pharmaceuticals and medical devices, chemical and petrochemical industries, and automotive and electromobility.
Credit amounts will not exceed 30 million pesos, and the program’s beneficiaries will be direct or indirect suppliers in the value chain of these strategic sectors.
Key Questions and Answers
- What is the main goal of the agreement between the Mexican government and banking sector? The primary objective is to increase credit allocation for micro, small, and medium-sized enterprises (mipymes) in Mexico, supporting strategic sectors outlined in Plan México.
- How has the agreement impacted mipyme access to financing? Since the agreement’s signing, mipyme access to bank financing has increased from 24.6% to 26.2%, with the number of creditworthy mipymes growing from 255,000 to 269,000.
- What is the current growth rate of the mipyme credit portfolio? The mipyme credit portfolio is growing at an annual rate of 7.6%, currently standing at 521,000 million pesos.
- How have interest rates for mipyme credits changed since the agreement? Interest rates for mipyme credits have been decreasing, averaging 14.40% in August compared to 15.55% at the agreement’s signing, with a projected rate of 16.10% in 2024.
- What strategic sectors does the credit portfolio support through collaboration with development banks? The 120,000 million pesos credit portfolio supports textiles and footwear, agroindustry, semiconductors, consumer goods, aerospace, pharmaceuticals and medical devices, chemical and petrochemical industries, and automotive and electromobility.
