The Mexican government will not acquire debt if companies are granted credits by the IDB

President López Obrador was skeptical about an agreement between the business sector and the IDB

The Mexican government will not acquire debt if companies are granted credits by the IDB
The agreement reached between the business lobby and the IDB will not compromise public funds of federal reserves - Photo: File Photo/EL UNIVERSAL
English 29/04/2020 09:29 Mexico City Editorial Actualizada 09:44
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On Monday, the differences between President López Obrador and business leaders became more evident after the Mexican Business Council reached an agreement with the Inter-American Development Bank to grant credits to companies. What also became evident is that the Mexican President doesn’t know how these international mechanisms work, as well as the lack of coordination inside his cabinet and a series of phobias that lead López Obrador to think that any attempt to protect the production plant and jobs is the beginning of a new Fobaproa, a bailout that represents the peak of the neoliberal past for López Obrador. 

However, financial aid shouldn’t have to become a political issue and it also doesn’t mean the federal government will acquire a debt, as explained by Finance Minister Arturo Herrera, who said it was all “a confusion.” On the contrary, this aid will be essential for the economic recovery because it is aimed at small and medium-sized enterprises, which generate 80% of jobs in the country; therefore, with this credits, these companies will lead the recovery process by normalizing their activities once the public health crisis is over.

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The agreement reached between the business lobby and the IDB will not compromise public funds or federal reserves, it does not represent a debt for the Mexican government, and the participation of the Finance Minister is simply to act as a witness and collateral in the negotiations. Nevertheless, for President López Obrador, these acts represent corruption acts aimed at rescuing rich companies and acquire a large debt for his administration, as well as harsh criticism towards an organization that Mexico co-founded in 1959. 

This is not the time to any agreement or alliance between the federal government and the business sector or with international organizations, especially amid an upcoming economic crisis without precedents. 

This is the perfect opportunity to come together and focus on the benefits this agreement could have on society, without politics that could negatively affect any attempt to overcome the crisis and prevent the loss of millions of jobs. It’s time to leave their differences behind because, in the end, Mexico will benefit from these credits.

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