Mexico City. Mexico has shown signs of maturity, responsibility, and the decision that, by itself, can take care of your fiscal framework in a way that "we think that it is not a good idea," emphasised the secretary of Finance and Public Credit, José Antonio Meade, to ask his opinion on the proposal made by the IMF to Mexico to establish an Independent Fiscal Council.
The dynamic that led to the gross debt of the country to be located above 50% of GDP, has generated a strong reaction by political opposition to the Administration, Peña, and that the rating agencies have been put "under observation" the career prosecutor of Mexico and the IMF, as part of the initial proposals of the monitoring of Article IV, has proposed to Mexico that consider this alternative implementation for various emerging countries and developed countries, including Great Britain and the united States.
in this regard, Meade said: "Mexico has many years of accredit in front of the markets a great capacity to manage its public debt and its fiscal balance, and the proposal is now being considered by Congress is shown of the decision to act with fiscal responsibility. We are probably the OECD country that more duration has on your debt. If we remember just a few years ago, in 1994 they were six months. Today, it is 8.1 years.
“Then almost all of our debt was pegged to the dollar, today three-quarters denominated in pesos, is 30 years, fixed rates. And in general, in Mexico we have a prudent management of our public finances", he emphasizes.
When asked why the levels achieved by the debit to the public, if he would have done something different, said: "You took advantage of the fiscal space when they could and should to prevent an economic downturn more important since the external environment is adverse, and to accommodate the effects of the structural reforms. But once we can no longer do so, we have started to collapse and consolidate our fiscal framework.
José Antonio Meade, secretary of Finance, rejects the idea of the Independent Fiscal Council, as it makes sure that what he credits to Mexico in front of the world "is the condition, the ability and the responsibility with which we have acted. That (is the) value that we are protecting from the Executive, which we shared with the Legislative, that has always accompanied this effort, because it makes, by far, the times of a Council as that suggests to us".
And reinforces: "it Has a lot more weight which is a country that you do so in a coordinated manner, Executive and Legislative, with a conviction clear, with signals, along as many years as it demonstrates the consistency in the decision making process to run a responsible fiscal policy, which must anchor our expectations and what should help us to look after our good name and our good credit."
Adds the explanation that is giving economic package to rating agencies, analysts and private bankers gathered in this capital u.s. during the end of this week, has validated the decision of fiscal responsibility, which is now evaluating the Congress and that there will be after you, run. "But it is by believing in him."
In relation to the agenda of Mexico in the IMF and the world bank, said that the reflection that is being made of the weakness of the charges for the eighth consecutive year to the global economy, its challenges and the coordination with other countries.
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