Mexico is facing a credit issue for Small and Medium-sized Enterprises (SMEs). Despite President Claudia Sheinbaum's calls to banks to increase lending to SMEs, data shows little progress. Moody's analysts point out that banks perceive high risks when lending to SMEs, and the processes for accessing government guarantees are too slow. To mitigate risks, better formalization of SME reporting and more efficient judicial processes are needed. Banks prefer to lend without government guarantees, as such loans are costly and risky. President Sheinbaum has spent three months organizing meetings with economists and business leaders to understand how to stimulate economic growth, which is essential for funding social programs.
