Background on the Mexican Banks Involved
The United States Treasury has decided to extend the deadline by 46 days for the implementation of restrictions against three Mexican financial institutions: CIBanco, Intercam, and Vector. These restrictions are due to alleged involvement in operations related to drug trafficking, specifically the trade of opoidoids.
Timeline and Recent Developments
- The original deadline for these restrictions was set to take effect on October 20, when US financial institutions would be prohibited from conducting operations with the accused Mexican entities.
- Meanwhile, in Mexico, the government, through Hacienda, announced progress in the sale of significant portions of CIBanco and Grupo Financiero Intercam’s operations.
- Multiva, led by Olegario Vázquez Aldir, will acquire CIBanco’s trust business, and Kapital Bank will purchase a substantial part of Intercam’s operations.
- Hacienda reported that multiple institutions expressed interest in participating in these operations.
US Treasury’s Decision and Mexican Government Response
The US Treasury’s Financial Crimes Enforcement Network (FinCEN) granted the extension due to Mexico’s ongoing efforts to address US concerns effectively. These measures include the temporary administration of affected institutions, as noted by FinCEN’s Jimmy Kirby.
The Mexican government has requested the US Treasury to provide evidence supporting FinCEN’s accusations, but no information has been shared publicly.
Impact on Mexican Banks
The extended deadline prolongs the slow decline of CIBanco, Intercam, and Vector, which have suffered significantly due to the reputational damage from these accusations.
- Credit Rating Downgrade: Fitch downgraded the long- and short-term national ratings of CIBanco, Intercam, and Vector to “speculative grade,” also known as junk status.
- Loss of Trust: All three institutions have experienced a substantial decline in credibility and confidence from clients and investors.
- Lack of Evidence: There are currently no concrete proofs to confirm the severe accusations made by the US Treasury.
Additional Context: Mexico’s Health Crisis
Health Secretary’s Warning: Mexico’s health secretary, David Kershenobich, highlighted the dire state of public health due to excessive soda consumption and associated healthcare costs.
- Soda Consumption: On average, a Mexican consumes 166 liters of soda annually, equivalent to 15 teaspoons of sugar daily.
- Mortality Rates: In the past year, there were 190,000 deaths from cardiovascular diseases and 110,000 deaths from diabetes mellitus.
- Childhood Obesity: Four out of ten Mexican children and adolescents suffer from overweight or obesity.
Despite the alarming statistics, there is a need to observe the Mexican government’s actions in combating this costly epidemic.
Upcoming Event: Hecho en México Program Launch
On Friday, August 22, Mexico’s Secretary of Economy, Marcelo Ebrard, will lead the launch event for the “Hecho en México” (Made in Mexico) program. This event will announce new measures and the participation of numerous large companies supporting this initiative. The Communications Council, led by Armando Paredes, also backs this strategy, focusing on national unity and strengthening Mexican values.
