By Felipe Gazcón
Martin Spicer, IFC director for Latin America and the Caribbean, visited Mexico in July to reaffirm IFC´s commitment with the country in the context of the COVID-19 economic recovery. Spicer was interviewed by El Financiero, Mexico´s top business newspaper. This is an English translation of the interview.
As a result of its proximity to the United States and because the pandemic may trigger new ways of using financing and doing things, there is a great optimism about the future potential growth of the Mexican economy, said Martin Spicer, Regional Director for Latin America and the Caribbean of the International Finance Corporation (IFC).
For these reasons, IFC is willing to increase the volume of financing to Mexico. IFC, a sister organization of the World Bank and a member of the World Bank Group, has a committed financing portfolio in Mexico of 2,515 million dollars (own account and mobilization) distributed among 76 projects with 61 clients.
Spicer highlighted that the existence of IFC contributes to solve a funding gap. Mexican banks provide loans to a sector of Mexican companies that do not need the help of IFC, but as an emerging market, there are always parts of the Mexican economy that are underserved and require very long-term financing. IFC focuses on those areas, where there are those spaces.
The IFC directive acknowledged that due to the pandemic there are some fears and precautions, however, sustained investment must continue to be promoted to ensure an increase in the country’s potential economic growth and per capita income. He recommended improving financial inclusion so that small and medium-sized companies have better access to credit.
Spicer pointed out that the expected growth of 6 percent of the Gross Domestic Product (GDP) for this year in Mexico and of 3 percent for 2022 provides an opportunity to encourage greater investment. “IFC wants to be part of this,” Spicer concluded.