The World Bank supports Mexico's commitment to 'nearshoring' with a $1 billion loan.

The World Bank supports Mexico's bet on 'nearshoring' with a $1 billion loan The World Bank has approved a $1 billion financing for the Government of Mexico, aimed at boosting credits for small and medium-sized enterprises, as well as sustainable finance policies. This loan represents significant support for Mexico's strategy to enhance nearshoring, attract investments that promote female inclusion, and adapt businesses to climate change. The approval of this loan came on June 3, a day after the presidential elections in which Claudia Sheinbaum emerged victorious. The endorsement from the World Bank comes after efforts by the Undersecretary of Finance, María del Carmen Bonilla Rodríguez, who advocated for the relevance of this financing for the country. In her statement, she highlighted the importance of having projects and programs that promote inclusive growth in Mexico, emphasizing the government's commitment to sustainable finance and financial inclusion, incorporating a gender perspective into financial strategies. By approving this financing, the World Bank recognized Mexico as a country that has made significant progress in its economy, exports, and attraction of foreign direct investment. However, it warned about the limited availability of credit that has hindered the full development of the country's economic potential. Against the backdrop of nearshoring, it is expected that this loan will boost economic growth and investment attraction, maximizing the benefits of Mexico's proximity to markets and its macroeconomic stability. The World Bank emphasized the importance of improving access to financing for businesses, especially small and medium-sized ones that have been neglected by traditional banking options. This loan aims to facilitate the use of guarantees such as warehouse receipts, simplify access to capital markets, and increase sustainable credit through development banks, thus strengthening the Mexican business sector. Additionally, the financing will contribute to promoting green finance and Mexico's transition to a low-carbon economy. Mexico, being one of the largest greenhouse gas emitters in Latin America, requires significant investments to achieve an economy resilient to climate change. This backing from the World Bank highlights the urgency of taking action in this regard, especially in a context of growing investment opportunities linked to nearshoring. Pedro Tello, an expert in economic issues, welcomed the realization of this financing although he believes it comes relatively late in the current government. He emphasized the importance of focusing resources on supporting small businesses so that they can become reliable suppliers to the major industries present in Mexico. Furthermore, he pointed out the need to facilitate access to financing for women entrepreneurs, underscoring the importance of including this gender perspective in financial policies. This $1 billion loan is the most significant authorized by the World Bank for productive projects in Mexico, demonstrating international support for the country's initiatives. From strengthening SMEs to promoting a more sustainable economy, it is expected that this financing will have a positive impact on Mexico's economic development in the coming years. Collaboration with international organizations such as the World Bank is essential to drive inclusive and sustainable growth in the country.