Government denies that debt will be incurred for relocation of companies

No debt will be incurred for the relocation of companies in the country, assured Gabriel Yorio, Undersecretary of Finance and Public Credit (SHCP) in the quarterly videoconference to comment on the results of public finances for the first quarter of the year.

“The Secretary of the Treasury spoke about the financing package that can be made available to companies that are interested in moving to Mexico, and this implies that they are going to have to incur some type of cost. What type of lines of credit exist for these companies? They are the private lines of credit from international agencies (…) This means that they are not budget lines of credit, we are not going to use any indebtedness instrument to fund this relocation, what is being thought is that the multilateral banks can provide direct credit to companies for these purposes”.

The statements come a day after Rogelio Ramírez de la O, head of the SHCP, indicated that the lines with multilateral banks would be used more to promote investment projects in Mexico.

“We are using resources from the multilateral banks (…) We are going to make more use of the multilateral lines because it is a financing reserve that has been available and we have not taken it to its full potential. So we are going to take advantage of it more,” Ramírez de la O said last week.

The Secretary of the Treasury explained that the use of the lines of multilateral organizations, such as the International Monetary Fund, World Bank, IDB, among others, is a much cheaper option than seeking financing in commercial banks.

In this sense, Gabriel Yorio pointed out that the IDB is the one that has a specific product for the relocation of companies, for which the Mexican government seeks to facilitate the connection of companies with the IDB.

“But these are not loans that are going to be granted to the Mexican government, and we are not going to use debt.”

recovery continues

Regarding economic growth, after knowing that the GDP in the first quarter of the year grew 0.9%, Gabriel Yorio indicated that the recovery of the economy continues; however, he said that some sectors are still lagging behind, especially those related to services.

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