Edgar Amador, who was appointed Undersecretary of Finance a few months ago, has been unanimously ratified as the new Secretary of Finance by the Senate last week. He faces several challenges in his new position, including the financial situation of Pemex, deficiencies in the pension systems, and the need to review the Regulatory Framework of the Financial System.
The level of credit compared to the size of the economy is extremely low, making it difficult to offer public actions or issue medium-sized debt. This situation poses a significant risk to society and public finances, as investment and economic activity could decline, which in turn would reduce tax revenue and increase the deficit and public debt.
It is crucial to review Pemex's business model and its role in the country's energy sovereignty. Amador also faces the need to orderly restructure Pemex by dividing it into a 'Good Pemex' and a 'Bad Pemex'. Another important challenge is to improve the pension systems and address the existing deficiencies in them.
Concerns have been raised about unfair competition in the mass placement of credit cards and the lack of eligible business projects for credits in the country. Edgar Amador, with his extensive economic and financial experience, will have to effectively address these issues to ensure financial stability and promote economic growth in Mexico.
