Other Economies

Sum of Measures 1—5 (Total Package)

Total Package in USD Million: 56,900.18
% of GDP (2019): 5.11%
% of Regional Total Package: N/A
Package Per Capita in USD: 450.91
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 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

No amount/estimate: (i) Monetary policy rate has been lowered by 100bp to 6%, most recently in a 50bp cut (April 21); Banco de México’s Governing Board decided to lower the target for the overnight interbank interest rate by 50 basis points to 5.5% (May 14); (ii) Halved the cost of repos; (iii) No amount/estimate: June 25, the Banco de Mexico reduced the overnight interbank interest rate target by 0.5% to 5%; (iv) No amount/estimate: August 13, Banco de Mexico reduced the overnight interbank interest rate target by 0.5% to 4.5%

02C - Loan guarantees
03 - Direct long-term lending info_outline MXN225,000,000,000 USD10,241,704,220
03A - Long-term lending info_outline MXN225,000,000,000 USD10,241,704,220

(i) Lending up to MXN25 billion to SMEs; (ii) Lending of MXN25 billion for small businesses who has not fired workers or reduced salaries since the outbreak; (iii) MXN175 billion - The Fovissste and the Infonavit will allocate 175 billion pesos to grant housing loans, during these nine months of the year.

03B - Forbearance
04 - Equity support info_outline
05 - Government support to income/revenue MXN205,350,000,000 USD9,347,262,051
05A - Health 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) Consider setting-up a Health Emergency Fund to request additional resources from Congress, that could reach up to MXN180 billion.

05B - Non-health MXN25,350,000,000 USD1,153,898,675

(i) Frontloading of social pension and disability payments by four months; (ii) Accelerating procurement processes and VAT refunds; (iv) MXN35 million - Some workers accessing loans against their social security accounts; (v) Public housing credit institute covering three months of workers’ debt (defer further six months for those let go); (vi) 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.

06 - Budget reallocation info_outline MXN207,000,000 USD9,422,368

(i) July 3, 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 & reserve drawdown
07B - Secondary purchase: government securities MXN200,000,000,000 USD9,103,737,084

(i) 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; (ii) 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. As of June 25, the total outstanding amount was USD6.59 billion, which is also the peak value first reached on April 8. [update]

08B - International loans/grants MXN12,000,000,000 USD546,224,225
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 April 5, 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) May 29, 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

Travel restrictions, social distancing, closure of schools and shutdown of non-essential activities. Reopening of the economy. On May 14, 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.