·        My administration will continue to generate conditions of certainty in response to the volatility of the international economy. We will continue implementing each and every one of the Structural Reforms, he said.

·        He inaugurated the 79th Banking Convention.

As he inaugurated the 79th National Banking Convention “Mexico and its Banks: key players in the new international economic order,” President Enrique Peña Nieto declared that, “Banks and the government are united in the shared commitment to work for the stability, growth and development of Mexico.”

He stressed that both, “Are clear that the top priority is stability, which is the basis for sustained growth and sustainable development.”

He stressed that, “The government has therefore taken the necessary measures to preserve our macroeconomic stability, and will continue to do so.”

My administration, he added, will continue to generate conditions of certainty in response to the volatility of the international economy. We will continue implementing each and every one of the Structural Reforms.”

The president said that Financial Reform, “Is yielding results and also moving in the right direction.” He said that two years after its enactment, it has allowed Mexico to have more, cheaper credit and in better conditions.

He mentioned some of the indicators showing the progress achieved through the implementation of this reform:

·        Domestic financial savings in our country rose from 55.8 percent of GDP in 2012, to 69.3 percent in 2015, an increase of 13.5 percentage points.

·        Financing of the private sector increased from 25.7% of GDP in 2012 to 30.9% in 2015, an increase of 5.2 percentage points.

·        Correspondingly, from December 2014 to December 2015,  credit for companies grew by 15.6%; with credit for micro enterprises increasing by 17.6.

·        Likewise, personal loans rose by 19.4 percent in the same period while mortgages increased by 9 percent. On this point, it is worth noting that credit has grown several times more than the national economy.

·        Interest rates are declining, particularly in the case of personal loans, whose rates have been reduced by up to 8.6 percentage points.

President Peña Nieto stressed the importance of the fact, “This increased credit supply has been accompanied by greater soundness of the banking system.”

-  In December 2015, its Capitalization Ratio was 14.96 percent, similar to the G-20 average of 15.1 percent.

-  That same month, the Default Rate of Commercial Banking was 2.6 percent, down from the 3.4 percent rate in January 2014.

In other words, he stressed, “We have a well capitalized bank with a healthy credit portfolio. All these indicators confirm the positive impact this reform is already having on the financial sector, one of the most important in our economy.”

The president thanked Mexican banking and  the financial system, “The men and women who work in it, for their vision, leadership and committed work that contributes to the economic development of our country; but more importantly, to improving the quality of life of Mexican families.”

He said that financial reform, in addition to transforming the financial system itself, is contributing to the transformation of other areas of national life.” For example, he explained, “It has strengthened financial inclusion in vulnerable sectors such as the beneficiaries of the PROSPERA Program.”

He declared that this reform is also making it possible, “To extend credit to specific sectors facing significant barriers to obtain it.” By way of an example, he cited the Credit Program, designed to support young entrepreneurs who have no credit history and sometimes no guarantees.

 “It is through the training and induction of this program, in which approximately 53,000 young entrepreneurs now participate, that they have been able to design their business model on-line and several of them have already obtained credits in significant quantities,” he explained.

The president said that women are also benefiting from new financial products such as the SME Women Program, which provides funding for up to five million pesos, with a preferential interest rate of 9 to 10 percent.

He stressed that key sectors such as housing and the countryside are expanding due to the increased credit supply. For example, he added, “From 2012 to 2015, housing loans granted by the Federal Mortgage Society and the Housing Operating and Bank Financing Fund has increased by 39.9 percent in real terms, while credit to the rural sector from FIRA, the National Development Financing Association and FOCIR has increased by 49.7 percent in real terms, over the same period.”

 “That is the goal of Financial Reform, to have a positive impact on the growth of our economy, to support the domestic market and especially to improve the everyday life of Mexican families,” he said.

President Peña Nieto recalled that in the complex, challenging economic circumstances currently being experienced by the world, “The International Monetary Fund has  recommended nations to undertake structural reforms to boost growth.”

Fortunately, he said, “In Mexico we anticipated that process and whereas other countries are only just undertaking diagnoses to design possible reforms, in our country, we are already implementing them.”

And not only that, he added, “In addition to the reforms, Mexico differs from other economies because it has macroeconomic stability and a robust banking system, as well as close productive integration with North America, a region that is having positive growth.”

“Integration, stability and reforms position Mexico as one of the most attractive economies in the world for investing and growing in the coming years,” he declared.

WE HAVE FOUND IN THE FEDERAL GOVERNMENT A CONSTANT WILLINGNESS TO COLLABORATE AND COORDINATE WITH THE BANK OF MEXICO: AGUSTÍN CARSTENS

After noting that Mexico now has the lowest level of inflation for 47 years, Governor of the Bank of Mexico (Banxico) Agustin Carstens said that the monetary policy measures adopted by the central bank have been crucial to this achievement. In the past 18 months, a key role has also been played by the reductions of various prices and widely used inputs such as energy and telecommunications services as a result of the structural reforms promoted by the current administration.

He stated that during President Peña Nieto’s administration, “We have found in the Federal Government a constant willingness to collaborate and coordinate with the Bank of Mexico: whenever there has been a need to preserve macroeconomic soundness of the country, fiscal policy has responded in a timely manner.”

He said that this coordination of fiscal and monetary policies, “Has in no way been detrimental to the autonomy of the Bank of Mexico. On the contrary, efficient coordination provided for in the Bank Act has strengthened the autonomous character of our institution, since it has made it possible to expand the degree of freedom to undertake a monetary policy fully aligned with the constitutional mandate to achieve low, stable inflation.

He added that coordination between Federal Government and the Bank of Mexico also extends to the regulatory sphere of the financial system. ”This coordination has pursued the goal, among others, of ensuring that the Mexican banking system has all the conditions to be a key player in boosting growth, while observing a strict, prudential scheme,” he said.

The governor of Banxico said that, “In the extraordinarily challenging global environment we live in, it is essential for state institutions to diligently comply with their specific mandates and the use of the policies that apply to them.” You can rest assured, he said, “That as an autonomous institution, the Bank of Mexico will continue to do so.”

INTEREST RATES ON CREDIT  CURRENTLY OFFERED BY MEXICAN BANKS ARE THE LOWEST IN HISTORY: LUIS ROBLES MIAJA

President of the Association of Mexican Banks Luis Robles Miaja said: “The credit interest rates currently offered today by the Bank of Mexico are undoubtedly the lowest in history; the portfolio also maintained its quality by reducing the default rate by 53 basis points.”

Saying that we now have a more robust, efficient, inclusive and competitive banking system than a year ago, Robles Miaja said that in 2015, the credit granted to micro businesses grew by 17.6 percent in real terms. He explained that 520 billion pesos were allocated to the segment of micro, small and medium enterprises, increasing by a factor of 22 the funds allocated by the Development Bank, which, “Complies more healthily and effectively with its role by complementing its efforts with Commercial Banking.”

He said the growth observed during the first three years of President Peña Nieto’s government exceeds that achieved in the same period of the three administrations that preceded it. He added that Mexico stands out because it is one of the emerging countries of  its size that is most likely to become a developed nation, given its features and the progress achieved in over 20 years, which have been accentuated by the structural reforms promoted by the president.

THE REFORMS HAVE PROTECTED MEXICO FROM THE WORLD CRISIS: HÉCTOR ASTUDILLO FLORES

Governor of Guerrero, Héctor Astudillo said that the reforms undertaken by the government have protected Mexico from the world crisis, and thanked President Enrique Peña Nieto, Secretary of Finance Luis Videgaray Caso, and Agustin Carstens, Governor of the Bank of Mexico, for their responsible, coordinated monetary and financial policy management.

He explained that the 79th Banking Convention comes at a time of a decelerating Chinese economy, falling oil prices and a volatile dollar. However, he added, “Mexico was prepared: it depetrolized its economy, we export more manufactured goods and are more fiscally  and financially sound.”

He stressed that, “Mexico now has a strengthened, dynamic and capitalized banking system, with a financial reform that has allowed credit growth in the country.”