Saturday, May 10, 2025

Sheinbaum promises to expand much-needed access to credit in Mexico

President Claudia Sheinbaum has signed an agreement with the Mexican Banking Association to boost credit access for small businesses, which she called a critical factor in stimulating economic growth.

The president announced the accord during her keynote address at the 88th National Banking Convention, which began Thursday in Nayarit. The agreement aims to facilitate access to financing for micro, small and medium-sized enterprises, known in Mexico by the acronym Mipymes.

The federal government and commercial banks will commit to increasing credit for small businesses by 3.5% annually over the next five years. Development banks, in cooperation with the Finance Ministry, will also be called upon to lower interest rates.

The objective, Sheinbaum said, is that by the time she leaves office in 2030, at least 30% of all small businesses have some kind of financing. 

During her Friday morning press conference, Sheinbaum said that in addition to lower interest rates, credit application procedures will be simplified. She also said that although a timeline to implement the agreement has not been established, the two sides are working to create the conditions to do so in the short term. 

In her address to the bankers, the president painted a positive picture of Mexico’s economic panorama before identifying the lack of access to credit as a significant problem in the banking sector.

Sheinbaum cited World Bank data indicating that credit to non-financial companies and to households is far too meager in Mexico. Compared to other nations surveyed, Mexico ranked second to last in terms of non-financial companies’ access to credit, while credit access for households ranked third to last.

Credit reaches only 33% of the population, she said, adding that financing for small and medium-sized businesses is essential for fostering economic growth.

Sheinbaum said the primary goal “must be greater access to credit if we want not only growth but fundamental well-being for Mexicans.”

The president set the stage for the credit agreement during her April 15 press conference when she urged banks to lower interest rates for small businesses. She noted that although the central bank has lowered interbank rates, small businesses still find it “very complicated” to get credit.

Bar San Miguel shown from street.
Small businesses like this neighborhood bar could benefit under Sheinbaum’s credit expansion plan. (Roman Lezhnin/Unsplash)

Sheinbaum opened her speech by saying all Mexicans should be “grateful” and “satisfied” with the country’s solid economic footing. 

Mexico registered quarterly growth of 0.2% in the first quarter of 2025 and a yearly increase of 0.8% compared to Q1 2024. At the same time, the Economy Ministry has amassed an investment portfolio of US $298 billion, she said, showcasing the confidence investors have in the country. 

Sheinbaum preached optimism, saying that in the face of external challenges, the economy “has responded extraordinarily.” Not a single company has retreated from investment plans despite tensions caused by tariffs implemented by U.S. President Donald Trump, she said.

The president did not mention the 1995 bank bailout known as Fobaproa, which she recently called “a scam.” 

The topic arose as part of a public spat with former President Ernesto Zedillo, who slammed Sheinbaum and her predecessor, Andrés Manuel López Obrador, for “steering the country back toward authoritarian rule.”

Sheinbaum responded by saying the bank bailout benefited Zedillo and the wealthy few while bankrupting millions of ordinary Mexicans. 

With reports from El Economista, La Jornada and El Universal

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