Other Economies

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 59,927.17
% of GDP (2020): 5.69%
% of Regional Total Package: N/A
Package Per Capita in USD: 469.74
Note: Measures 9 and 10 are added to the sum of Measures 1-5.
Measure Amount (Local) Amount (USD) Details Update Source
01 - Liquidity Support info_outline MXN469,690,000,000 USD21,379,671,355
01A - Short-term lending info_outline MXN200,000,000,000 USD9,103,737,084

(i) No amount/estimate: Ordinary Additional Liquidity Facility (FLAO); (ii) MXN100 billion - Temporary security swap window; (iii) MXN100 billion- Banco de México has decided to implement a corporate securities repurchase facility (FRTC) through credit institutions in order to provide liquidity to short-term corporate securities and long-term corporate debt that, as a result of the conditions of uncertainty and volatility, have observed lower liquidity and impaired trading conditions in the secondary market.

01B - Support policies for short-term lending info_outline MXN50,000,000,000 USD2,275,934,271

(i) Reduce the mandatory regulatory deposit with Banxico (by MXN50 billion, or about 15% of the current stock); (ii) The central bank has also substantially expanded its liquidity facilities making them more affordable, accepting a broader range of collateral and expanding eligible institutions while establishing a corporate securities repo facility to support the corporate bond market.

01C - Forex operations info_outline MXN219,690,000,000 USD10,000,000,000

(i) The exchange rate has been allowed to adjust flexibly, while supporting USD liquidity. A new tool was added this week permitting the central bank to intervene in offshore non-deliverable forwards markets; (ii) Activated the swap line with the Fed, auctioned already USD5 billion to commercial banks with an 84-day maturity and announced a second auction (USD5 billion).

02 - Credit creation info_outline MXN350,000,000,000 USD15,931,539,897
02A - Financial sector lending/funding info_outline MXN350,000,000,000 USD15,931,539,897

(i) MXN350 billion - Financing facility for commercial and development banks to foster lending to SMEs.

02B - Support policies for long-term lending info_outline
02B1 - Interest rate adjustments

No amount/estimate: (i) 13 February 2020, Banco de Mexico cut the policy rate by 0.25% to 7%; (ii) 20 March 2020, Banco de Mexico reduced the rate charged to commercial banks for secured credits or repos. The rate is reduced from the normal 2 to 2.2 times the size of the overnight interest rate target down to 1.1 times this rate; (iii) 20 March 2020, Banco de Mexico reduced the overnight interest rate target by 0.5% to 6.5%; (iv) 21 April 2020, Monetary policy rate has been lowered by 0.5% to 6%; (iv) 14 May 2020, Banco de México’s Governing Board decided to lower the target for the overnight interbank interest rate by 50 basis points to 5.5%; (v) No amount/estimate: 25 June 2020, the Banco de Mexico reduced the overnight interbank interest rate target by 0.5% to 5%; (vi) No amount/estimate: 13 August 2020, Banco de Mexico reduced the overnight interbank interest rate target by 0.5% to 4.5%; (vii) No amount/estimate: 24 September 2020, Banco de Mexico reduced the overnight interbank interest rate target by 0.25% to 4.25%; (viii) No amount/estimate: 11 February 2021, Banco de Mexico reduced the overnight interest rate target by 0.25% to 4%; (ix) No amount/estimate, 24 June 2021, the target for the overnight interbank interest rate was increased by 0.25% to 4.25%; (x) No amount/estimate, 12 August 2021, Banco de Mexico increased the overnight rate by 0.25% to 4.5%; (xi) No amount/estimate: 30 September 2021, The Banco de Mexico increased its interest rate target by 0.25% to 4.75%; (xii) No amount/estimate: 11 November 2021, The Banco de Mexico raised its interest rate target by 0.25% to 5% [update].

02B2 - Other policies to support long-term lending
02C - Loan guarantees
03 - Direct long-term lending info_outline MXN226,500,000,000 USD10,309,982,248
03A - Long-term lending info_outline MXN226,500,000,000 USD10,309,982,248

(i) Lending up to MXN25 billion to SMEs; (ii) Lending of MXN25 billion for small businesses who have not fired workers or reduced salaries since the outbreak; (iii) MXN175 billion from The Fovissste and the Infonavit to grant housing loans; (iv) 8 February 2021: The Ministry of Economy is accepting applications for the Financial Support Program for Family Microenterprises, which will provide MXN25,000 loans to 60,000 microbusinesses, with a 3-month grace period for repayment--MXN25,000 x 60,000 = MXN1.5 billion.

03B - Forbearance
04 - Equity support info_outline
05 - Health and income support MXN270,350,000,000 USD12,305,976,603

(i) No amount/estimate: 10 September 2020, President Andres Manuel Lopez Obrador's (AMLO) proposed budget for 2021 continues Mexico's austere fiscal path even during COVID-19, pushing for a primary deficit in the coming year after one of the smallest fiscal packages for countering COVID-19 at 1.2% of GDP.

05A - Health support MXN180,000,000,000 USD8,193,363,376

(i) Ensure that the Ministry of Health has sufficient resources and does not face red-tape, and sufficient supply of medical equipment and materials;(ii) Advance pension payments to the elderly; (iii) Accelerate the tender processes for public spending to ensure full budget execution; (iv) 18 March 2020, The Ministry of Finance created a Health Emergency Fund authorized for up to MXN180 billion; (v) No amount/estimate: As of 10 November 2021, 75.2 million million Mexicans (58.3% of the population) had received at least 1 dose of COVID vaccination, while 62.7 million (48.6% of the population) were fully vaccinated [update];

05B - Income support MXN90,350,000,000 USD4,112,613,228
05B1 - Tax and contribution deferrals and policy changes MXN350,000,000 USD15,931,540

(i) No amount; Frontloading of social pension and disability payments by four months; (ii) Accelerating procurement processes and VAT refunds; (iii) MXN35 million - Some workers accessing loans against their social security accounts; (iv) No amount/estimate: Public housing credit institute covering three months of workers’ debt (defer further six months for those let go).

05B2 - Tax and contribution rates reduction MXN65,000,000,000 USD2,958,714,552

(i) 5 April 2020, President Lopez Obrador announced that the government would cut Pemex's tax burden by MXN65 billion.

05B3 - Subsidies to individuals and households
05B4 - Subsidies to businesses
05B5 - Indirect income support MXN25,000,000,000 USD1,137,967,136

(i) MXN25 billion - Introduction of drinking water, drainage, pavement, and the construction and improvement of 50,000 homes in marginalized areas of 50 municipalities in the country.

05B6 - No breakdown (income support)
05C - No breakdown (health and income support)
06 - Budget reallocation info_outline MXN207,000,000 USD9,422,368

(i) 3 July 2020, Federal Institute of Telecommunications transferred MXN207 million to the Ministry of Finance and Public Credit to be reassigned for actions related to addressing the pandemic.

07 - Central bank financing government MXN200,000,000,000 USD9,103,737,084
07A - Direct lending and reserve drawdown
07B - Secondary purchase: government securities MXN200,000,000,000 USD9,103,737,084

(i) 20 March 2020, Banco de Mexico announced collaboration with the Ministry of Finance to strengthen the Government Debt Market Makers Program; Banco de Mexico will provide swaps of government securities and amend the purchase option of government securities for market makers to allow exercise of the option on the 2nd banking day following the auction rather than the 1 day; (ii) MXN100 billion - Swaps of government securities in which it will receive long-term securities (10 years and longer) and will deliver other with maturities of up to 3 years; (iii) MXN100 billion - Government securities term repurchase window in which Banco de México facilitates an orderly intermediation of government securities (Cetes, Bonos M, Udibonos, Bondes D and BPAs), which will benefit financial institutions with liquidity needs.

08 - International Assistance Received MXN1,330,140,000,000 USD60,546,224,225
08A - Swaps info_outline MXN1,318,140,000,000 USD60,000,000,000

Provide USD liquidity (via auctions) to banks by drawing on the USD60 billion swap line with the Fed. The peak value of USD6.59 billion was first reached on 8 April 2020 and remained through 25 June 2020; as of 21 April 2021, the current amount outstanding is USD400 million.

08B - International loans/grants MXN12,000,000,000 USD546,224,225

(i) 20 November 2020, the IMF completed its review of Mexico's qualification for the Flexible Credit Line (FCL) and affirmed Mexico's continued qualification to access FCL resources; the current 2-year FCL arrangement is in the amount equivalent to SDR44.5635 billion (about USD61 billion), as approved on 22 November 2019 by IMF's Executive Board.

08B1 - Asian Development Bank
08B2 - Other MXN12,000,000,000 USD546,224,225

Inter-American Development Bank (IDB)-funded MXN12 billion loan scheme for small and midsized firms.

09 - International Assistance Provided
09A - Swaps info_outline
09B - International loans/grants
10 - No breakdown
11 - Other Economic Measures

(i) On 5 April 2020, President Lopez Obrador outlined his government’s policy priorities to combat the economic effects of COVID-19, including more health spending and strengthening of the social safety net; (ii) 29 May 2020, Secretariat of Finance and Public Credit suspended deadlines for institutions subject to supervision by the National Commission of Insurance and Bonds.

12 - Non-Economic Measures
12A - Measures affecting travel and transport (local and international)

Travel restrictions and social distancing measures.

12B - Measures affecting business and workplace

(i) Closure of schools and shutdown of non-essential activities; (ii) On 14 May 2020, the government announced plans to begin the normalization of economic activities, including a green-yellow-orange-red color system for states to represent the extent of activities allowed (e.g. states with most active cases are red and would remain in a forced quarantine), the resumption of school and labor activities in municipalities free of infection, and the addition of construction, mining, and transport equipment manufacturing as essential activities.

12C - Others