Weekly Report - 11 June 2020 (WR-20-23)

MEXICO | WB loan. On 7 June Mexico’s finance ministry (SHCP) confirmed that it had received a US$1bn loan from the World Bank (WB) for general financing purposes. A day earlier a local daily, El Financiero, reported that the government had applied for the loan to finance its response to the coronavirus (Covid-19) pandemic. This stoked controversy as President Andrés Manuel López Obrador has ruled out taking on more debt for this purpose and has used this as an excuse for not rolling out a major fiscal stimulus package. The SHCP said the government had applied for the loan last year before the onset of the pandemic and that it would not be used to “finance any activities related to the response to Covid-19”. This prompted the opposition Partido Revolucionario Institucional (PRI) to call on the government to clarify the reasons for getting it.

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