Mar 18 • 19:40 UTC 🇲🇽 Mexico El Financiero (ES)

Banking support is present, but the economy needs to be promoted

The Mexican banking system supports growth, but economic recovery is hampered by issues such as insecurity, according to Alejandro Valenzuela of Banco Azteca.

Alejandro Valenzuela del Río, chairman of Banco Azteca, emphasizes that while the banking system in Mexico provides essential support for growth, the country has not managed to boost its economy due to various factors that extend beyond access to financing. He asserts that funding for projects is available; however, underlying problems, especially related to security, are significantly hindering economic performance. Many banks and investors exercise caution in regions plagued by violence and crime, leading to a reluctance to engage in economic activities in those areas.

Valenzuela highlights that insecurity is the primary issue affecting economic progress in Mexico, citing it as a serious national problem that needs governmental attention. He argues that the pervasive conditions of danger deter both banks and potential investments, creating a cycle of underinvestment and weak economic growth. He calls for the government to step up its focus on security issues, as this is critical for fostering a more inviting environment for investors and enhancing overall productivity in the private sector.

The discussion points to a broader implication that improving security not only benefits societal safety but is also essential for economic stability and growth. The banking system's readiness to finance projects indicates a willingness to invest, but without addressing the fears related to safety, Mexico may continue to struggle to stimulate its economy effectively. Comprehensive reforms aimed at enhancing security could, therefore, play a pivotal role in revitalizing economic contributions from the private sector, potentially altering the current economic trajectory.

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