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Mexican financial authorities relax banking rules to help economy

Credit: REUTERS/LUISA GONZALEZ

Mexico's finance ministry and banking regulator on Wednesday extended measures to allow banks as well as financial intermediaries to restructure loans and other credits to clients, the ministry said in a statement.

Adds details on measures announced

MEXICO CITY, Sept 23 (Reuters) - Mexico's finance ministry and banking regulator on Wednesday extended measures to allow banks as well as financial intermediaries to restructure loans and other credits to clients, the ministry said in a statement.

The measures are aimed at boosting the country's ailing economy and extend until next year several temporary rules designed to avoid defaults and loss of collateral.

Among the measures announced include relaxation of liquidity requirements until next March, extending the use of a capital buffer through the end of 2021 as well as temporary relief for 18 months for farming credits.

But the government does not intend to expand spending to strengthen the economy, Finance Minister Arturo Herrera said after the statement was issued, adding that he saw a slow recovery after the rapid slump during pandemic lockdown measures.

(Reporting by Sharay Angulo; Writing by David Alire Garcia; Editing by Frank Jack Daniel)

((david.aliregarcia@thomsonreuters.com; +52 55 5282 7151; Reuters Messaging: david.aliregarcia.thomsonreuters.com@reuters.net))

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