Politics, Business & Culture in the Americas

Mexican Senate Committees Pass Financial Reform



An overhaul of Mexico’s private-sector lending system was approved by four key Senate committees on Wednesday, moving President Enrique Peña Nieto’s financial reform one step closer to passage. The housing, public credit, justice, and legislative studies committees all voted to pass the bill, following its passage in the Chamber of Deputies. The full Senate will discuss the 70 provisions of the bill today, with an expected vote on Tuesday. If any major changes are introduced, the bill would go back to a lower chamber for approval. Otherwise, it will go to President Peña Nieto to sign into law.

The bill, part of the Pacto por México (Pact for Mexico) reforms agreed upon by President Pena Nieto’s Partido Institucional Revolucionaria (Institutional Revolutionary Party—PRI) and the country’s main opposition parties, would increase lending among Mexico’s banks, lower interest rates on loans and make credit more accessible to small and medium enterprises. The governor of Mexico’s Central Bank, Augustín Carstens, said in May that the proposed reform could help grow the economy by 0.5 percent over the next two to three years.

President Peña Nieto, who will reach his one year anniversary in office next month, has staked significant political capital in the Pacto por México reforms, ranging from education and energy to security and telecommunications. The most controversial reform thus far has been the proposed privatization of Petróleos Mexicanos (Pemex), the state-owned petroleum company to help attract investment and technology to Mexico’s ailing energy sector.

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