Mexico will make greater use of the lines it has with multilateral banks

Mexico will make greater use of the lines with which it has multilateral organizations to finance the investment in infrastructure, particularly the one that has environmental, social and governance criteria (ESG, for its acronym in English), said Rogelio Ramírez de la O, head of the Ministry of Finance and Public Credit (SHCP).

“We are using resources from multilateral banks (to finance investment projects) (…) We are going to make more use of 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”, he said during his participation in an event organized by the Council of The Americas.

The official explained that the use of multilateral bank lines It is a much cheaper option than commercial banking.

In addition to these lines, Ramírez de la O explained that the projects are financed through the reallocation of resources from the Federation Expenditure Budget (PEF), in addition to using the development bank, where Banobras, Nafin and Bancomext enter.

She added that the agenda of the projects is varied, but that there is a green, gender, and equality agenda, among others. “We are adding the social line. Our projects lend themselves to green financing, but also to social development”.

On Wednesday night, the President Andres Manuel Lopez Obrador, accompanied by his cabinet, held a dinner with American businessmen from the Council of the Americas. At that meeting, one of the main topics was foreign investment opportunities in Mexico.

Ramírez de la O added that, in order to create a suitable climate for the investmentthe government maintains a strategy where it emphasizes providing certainty about the macro framework, expanding the potential product frontier, as well as adherence to the T-MEC.

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