September 25, 2020
1. President meets with business leaders
President Andrés Manuel López Obrador met with businessman Carlos Slim, owner of Grupo Carso, and Miguel Rincón, CEO of Bio Pappel. Although there are no specific details about the meeting at the National Palace, the president expressed his admiration and willingness to listen to successful entrepreneurs in support of the country’s welfare.
Likewise, the president met with Coca-Cola CEO James Quincey to discuss the company’s new investments in the country, the new warning label on food and beverages, and the possibility of granting a support program to 1.2 million small businesses with interest-free loans, in a bid to address the consequences of the COVID-19 pandemic.
2. Banxico cuts interest rates again
Unanimously, the Board of Directors of the Bank of Mexico (Banxico) decided to cut the interest rate for the seventh consecutive time, lowering it to 4.25%, a level not reached since August 2016. The decision corresponds to the current limitations on monetary policy, and factors affecting the outlook for inflation and other key indicators.
According to data from the National Institute of Statistics and Geography, inflation in the first half of September remained at an annual rate of 4%, above the upper limit of Banxico’s target range.
El Economista: Banco de México lleva la tasa a 4.25%, en decisión unánime.
El Universal: Inflación continúa fuera del objetivo de Banxico.
3. Ministry of Finance announces credit restructuring
The Ministry of Finance and Public Credit, in conjunction with the National Banking and Securities Commission, issued a package to support individuals and businesses in the restructuring of credits, which includes lower interest rates or the extension of payment terms, in order to mitigate the economic effects of the COVID-19 pandemic.
Authorities agreed that the extension of the health emergency created the necessity to take new measures, meaning financial institutions must adjust to the new reality of family and credit economies.
El Financiero: Lanzan paquete para reestructurar créditos.
4. President contemplates new energy reform
President Andrés Manuel López Obrador is considering a restructure of the current energy reform in a bid to strengthen the Federal Electricity Commission and Petróleos Mexicanos. The proposed plan would take effect following the 2021 mid-term elections and would respect existing contracts with the private sector and prioritize benefits for state-run enterprises.
On the other hand, Alfonso Morcos Flores, General Director of the National Center for Energy Control (CENACE), announced his resignation from the organization. Recently, the organization was involved in controversy after Greenpeace achieved a definitive suspension against the current administration’s energy policy.
5. Opposition puts a stand in the Zocalo, demands President’s resignation
After having taken Juárez Avenue, the National Anti-AMLO Front (FRENAA) managed to enter the capital’s central plaza, where the group indicated that they would camp in Zócalo Plaza to demand the president’s resignation. According to their leader, Gilberto Lozano, around 3,400 people will camp in that location until November 30th and, if necessary, for longer.
Additionally, Ricardo Anaya, former presidential candidate in 2018 for the National Action Party (PAN) announced a return to political life via social media, hoping to solve various problems currently facing the country.