Mexico Business Update - March 7th, 2014


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Mexico Business Update - March 7th, 2014

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Mexico Business Update - March 7th, 2014

  1. 1. Mexico Business Update 7 March 2014 Peña announces home loan boost President Enrique Peña Nieto has promised that 2014 will be “the year of reactivation for the housing sector.” In a press conference Peña Nieto said that the housing sector is strategic to the country’s development, and that institutions such as the National Housing Fund Institute (Infonavit), the Housing Fund for Socail Security and Services for Government Employees (Fovissste), National Peoples Housing Fund (Fonapo), the Federal Mortgage Society and the National Housing Commission (Conavi) will boost lending to more than 300 billion pesos ($23 billion) this year. House votes to approve bill limiting referendums The law aims to eliminate the legal grey area created by the fact that the Mexican Constitution allows for binding referendums, but no laws established how they would be carried out. This grey area has led to a constitutional conflict between Peña Nieto and Mexico’s leftist parties, who have gathered signatures to overturn last year’s controversial energy reform. Election publicity law to be revised President Enrique Peña Nieto has proposed a reform to the Mexican Constitution that would establish that federal and local elections could be annulled if it is proven that political parties or candidates have used any unapproved means to acquire favorable coverage in radio or television. No arrests yet in Oceanografía case The Public Service Secretariat (SFP) announced that it has yet to launch an investigation into any government officials over the Oceanografía case. Oceanografía — one of Petróleos Mexicanos’ (Pemex) main service providers — has been accused of defrauding Banamex and engaging in corrupt practices with Pemex. The company, owned by former President Vicente Fox’s stepsons, and Pemex are now under investigation by the Attorney General’s Office. Highway works started in Morelos Gerardo Ruiz Esparza, director of the Communications and Transportation Secretariat (SCT), broke ground on the 21st Century Highway, which will connect the Pacific Coast state of Guerrero and neighboring Morelos with the Gulf Coast. According to Ruiz Esparza, the highway will be ready by March 2016 and its final cost will reach 1.9 billion pesos ($143 million). Freight rail reform will reduce investment Approval of the freight rail reforms will reduce investment in the Mexican rail system, said Lorenzo Reyes, COO of Grupo México subsidiary Ferromex. Mexico's lower house approved a bill on February 4 that promises to open up the rail sector to increased competition by obligating existing concessionaires to share their lines or risk having the concession revoked. Buenaventura aims to start mining operations Peru's Buenaventura (NYSE: BVN) aims to begin mining operations in Mexico as soon as possible. The company, Peru's largest locally owned precious metals producer, currently only has producing mines in its home country but plans to become geographically diversified over the longer term with Mexico a preferred location. Hundreds march for release of "Chapo" More than 1,000 people took to the streets last week, including schoolchildren, demanding the release of “Chapo” Guzman, who was arrested on a successful operation led by the Navy on Feb 22. The world's most-wanted narcotics kingpin is said to have caused the deaths of 10,000 people in Mexican drug wars. Kobe, others considering steel plant in Mexico Steel-maker Kobe Steel Ltd. and its trading affiliate Shinsho Corp. have agreed with three other companies to consider setting up a joint venture in Mexico to process steel wire rod into steel wire of cold heading quality used to make auto parts. For more information about our service offer, check us out on twitter: @a_nuricumbo