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LatinNews Regional Monitor: Mexico - 24 April 2020

MEXICO: Economic response still fuelling controversy

Mexico’s finance ministry finally tabled a bigger economic package to combat the coronavirus (Covid-19) pandemic on 22 April. It still falls short of the action being taken by other major nations, however, not least because it is unclear how much of the proposed spending is new. It will also be financed by even more stringent austerity measures and cuts elsewhere. And the plan involves no tax relief for companies reeling from the country’s lockdown. A day earlier, the central bank Banco de México (Banxico) announced a major injection of funds into the financial system in an unprecedented measure. But with no fiscal policy to complement this monetary policy, companies might not want to take the risk of applying for the available credit.

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