*Mexico’s President Andrés Manuel López Obrador has promulgated the judicial reform bill which cleared congress on 11 September. López Obrador was accompanied at the signing ceremony by President-elect Claudia Sheinbaum, who will take office on 1 October. The possible impact on the financial sector of the reform, which establishes the direct election of judges and magistrates, was outlined in a 12 September report by the Mexican branch of international credit ratings agency Moody’s. The report states that an expected period of uncertainty is likely to be felt most strongly by portfolios that invest in small and medium-sized businesses and mortgage funds, which “depend on clear legal certainty that guarantees the judicial execution of collaterals in the event of default”. Moody’s said that it expects banks to reduce lending in the short-term until this uncertainty is resolved.
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LatinNews Daily - 16 September 2024
In brief: Mexico’s López Obrador promulgates judicial reform bill
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