Background on Javier Garza Hoeffer and Asofom
Javier Garza Hoeffer, the national president of the Association of Multiple-Purpose Financial Companies in Mexico (Asofom), has expressed concerns about the economic uncertainty caused by US President Donald Trump’s trade and tariff strategies. This uncertainty has led to a decrease in credit requests from businesses in Mexico during the first few months of 2025, according to Garza Hoeffer.
Asofom’s Role and Relevance
Sofomes, or Sociedades Financieras de Objeto Múltiple, are crucial for the non-bank financial sector in Mexico. They primarily cater to small and medium-sized enterprises (SMEs) that do not have access to traditional banking services. Asofom, under Garza Hoeffer’s leadership, has been instrumental in supporting these businesses.
Impact on Credit Placement
Garza Hoeffer anticipates that due to the current economic uncertainty, credit placement by Sofomes in 2025 may only reach double-digit growth. Previously, the growth rate had been as high as 17%, but with the present situation, reaching 10% would be considered excellent.
Regional Focus: Occidente
The Occidente region, comprising the states of Jalisco, Colima, Nayarit, Zacatecas, Michoacán, Aguascalientes, and Guanajuato, is a priority for Sofomes. In 2024, these companies placed over 198,000 million pesos in credit within this region, making it one of the most significant areas for the non-bank financial sector.
- Jalisco received the largest amount of financing, with 113,000 million pesos.
- Michoacán received 19,000 million pesos.
- Guanajuato received 37,000 million pesos.
- Colima received 5,000 million pesos.
- Zacatecas received 4,000 million pesos.
- Aguascalientes received 9,000 million pesos.
- Nayarit received 8,000 million pesos.
Supporting SMEs and Microenterprises
Garza Hoeffer emphasized that Sofomes play a vital role in financing sectors where traditional banking does not reach, particularly SMEs and microenterprises. Asofom is currently promoting more financing for these businesses through the Plan México initiative.
Collaboration with State Governments
Garza Hoeffer explained that in microcredit, the average financing amount ranges from 15,000 to 300,000 pesos. In many cases, these credits are supported by state governments. Asofom collaborates with various state governments to provide financial assistance while offering guarantees, expanding their network in states like Coahuila, Nuevo León, Chiapas, and soon in Chihuahua within the agricultural sector.
Asofom’s Regional Encounter
Óscar Cruz, the national vicepresident of Asofom, highlighted the importance of the Occidente region’s Asofom Encounter. This event allows sector leaders to share ideas, discuss challenges such as accessing new credit origination platforms, and learn about new funding opportunities, technological advancements, regulations, and ASG (Environmental, Social, and Governance) criteria.
Key Questions and Answers
- What is the main concern expressed by Javier Garza Hoeffer? The primary concern is the economic uncertainty caused by Donald Trump’s trade and tariff strategies, which has led to a decrease in credit requests from businesses in Mexico.
- What is the anticipated growth rate for Sofomes’ credit placement in 2025? Due to the current uncertainty, Garza Hoeffer anticipates that credit placement may only reach double-digit growth.
- Which regions are prioritized by Sofomes for credit placement? The Occidente region, comprising Jalisco, Colima, Nayarit, Zacatecas, Michoacán, Aguascalientes, and Guanajuato, is a priority for Sofomes.
- What types of businesses do Sofomes primarily support? Sofomes mainly cater to small and medium-sized enterprises (SMEs) that do not have access to traditional banking services.
- How does Asofom collaborate with state governments? Asofom collaborates with various state governments to provide financial assistance while offering guarantees, expanding their network in states like Coahuila, Nuevo León, Chiapas, and soon in Chihuahua within the agricultural sector.
