The reform of the Securities Market Law is not a “silver bullet” that will help solve the financing problems in the country, argued José Luis Negrín, general director of Financial System Affairs at Banco de México (Banxico).
“Yes, it can translate into a better allocation of resources; However, much will depend on how they land on secondary regulation. This reform is not a silver bullet that solves absolutely everything, it is a step in the right direction,” said the manager.
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When participating in the 2023 Meeting of the Mexican Association of Stock Market Intermediaries (AMIB), Negrín highlighted that within the sector the stigma still persists that entering the stock market is an expensive and complex process.
Furthermore, there is a “profound lack of knowledge” of how the stock market sector works and therefore little interest in accessing this type of financing in the short or medium term.
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He added that according to the National Company Financing Survey (ENAFIN), prepared by the National Banking and Securities Commission (CNBV) and the National Institute of Statistics and Geography (Inegi), only about 0.5 percent of companies in Mexico They have access to financing in the stock market.
“Many businessmen consider it difficult to enter the stock market. Simplification is an element that goes in the right direction; It is a step in a situation in which we really have many financing problems,” said Negrín.
At the end of April, the plenary session of the Senate of the Republic approved an initiative to reform the Securities Market Law, which seeks to ensure that more companies, mainly SMEs, can access stock financing without so much bureaucracy.
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Likewise, the intention is that potential issuers have shorter times and costs to access resources in the market, whether in the Mexican Stock Exchange (BMV) or the Institutional Securities Exchange (BIVA).
In the same AMIB forum, Ángel Cabrera Mendoza, coordinator of Banking and Securities of the Banking and Savings Unit of the Ministry of Finance, celebrated that this reform seeks to help SMEs, which generate 70 percent of formal jobs in the country.
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“One of the objectives is financial inclusion and allowing these companies, which constitute one of the main engines of the national economy, to have access to financing in better conditions than those currently offered in the market,” he said.
According to Cabrera Mendoza, the modifications to the legislation will also serve to give investors new business options.
2023-10-04 17:10:02
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