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.
En la #88ConvencionBancaria, la presidenta @Claudiashein exhortó a la banca a comprometerse con el desarrollo mediante el financiamiento a las micro, pequeñas y medianas empresas.
Mientras en países como Japón el crédito representa el 193% del PIB, en México apenas alcanza el… pic.twitter.com/V3EZfdzuVG— Nora Ruvalcaba Gámez (@Nora_Ruvalcaba) May 9, 2025
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.
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
I sure hope a bunch of unsophisticated tiny stores don’t rush out thinking “Oh boy. A loan at only 60% APR”
30%
Expanded credit access in moderation can be great for small and mid sized businesses to be able to invest and grow, but it can quickly become a slippery slope as we have seen elsewhere.
The flow of capital is essential to a strong economy. If you’re second to last in the world with access to capital, then this will always be a restraint on economic growth.
Is capital important? Yes. Has Mexico seen an influx of capital in the last 30-40 years? Yes. But the world bank mires countries in debt. The US has drowned themselves in debt. We will sooner rather than later lose reserve currency status. The US is a legacy economic power. And most of the reason it is is because of extreme amounts, obscene amounts, of borrowing. Banks know who to loan to and who not to far better than the gov. The banks need to make a return. Govs just want to get reelected.
There are MAJOR pitfalls with out of control debt. Mexico, slow and steady is much better. Stay the course.
Concur
More political talk. You have to trust before there is credit!!!!
Mexican businesses don’t need more debt. No debt = Freedom. Don’t be a debt slave.
Amen!
A bigger benefit would be mortgage lending. A house has over 10,000 unit parts in construction and finishes. It would be an enormous boost to all areas of the economy. Problem is banks can’t repossess for non payment. To change this would require a modification of the constitution, which isn’t going to happen.
So…the next best thing is corporate/business lending. For the banks it is lien able assets and how to value them. For the business it is the interest rates. Mexico has the highest interest rate of most world countries. A bigger problem is the infrastructure in banks to accommodate business lending. So just another pie in the sky. Sounds good though. Just like tariffs. Sheinbaum is spending to much time being Trump’s buddy.
The US knows how to financialize an economy. Mexico should copy some aspects of the American system. 401k, retirement plans, pooled debt obligations. Mexican stock market is a cesspool of fraud. Fix it.
Mexico should not, and will not, follow the example of the US Fed gov when it comes to borrowing and spending and printing. Thank god. The only way we can do it is with our military. They will be just fine.
US stock market is a cesspool of fraud…FIFY
My first reaction was that it’s a terrible idea – but i know very little about Mexican law. Are incompetent business owners, gullible bank customers or unlucky borrowers trapped for life in debt? Good ideas might see the light of day, but if it exasperates an underclass of borrowers it could cause more problems than it solves.