April 29, 20 - 3:57 pm - LABS

IDB: Mexico is taking different measures than other countries for the crisis, but that’s not a bad thing

While some governments inside and outside Latin America are giving fiscal relief to companies with subsidies, exemptions, and payment deferrals, Mexico has implemented a strategy that combines emergency aid to the poor with credit lines to micro, small and medium-sized companies, and fiscal stimulus. This strategy has generated severe criticism from the private sector in the country.

In an interview with Forbes, the Inter-American Development Bank (IDB)‘s representative in Mexico, Tomás Bermúdez, said that it is too early to criticize the country’s measures, given that the COVID-19 crisis is an unprecedented crisis, and each “recipe” for fighting the virus is different.

Mexico is trying a different path from that of most countries, but it is not necessarily a bad one. We are in a territory so unprecedented, and we do not know how even the consequence of viruses will manifest itself… each recipe is different

Tomás Bermúdez, from IDB.

In the midst of the economic crisis caused by Covid-19, the IDB has taken measures to support the Latin American countries in financial terms, with the expansion of the availability of credits and technical assistance. In the case of Mexico, the bank expanded the availability of credit for this year to 2.35 billion dollars. “That does not mean that Mexico wants to take it, it is simply available in case it needs it,” Bermúdez said.