A Guide to Selected Emerging Markets for Microfinance Issuers and International Investors: Mexico
This guide presents a detailed picture of capital markets and microfinance markets in Mexico and is useful for microfinance issuers and international investors. It highlights high microfinance penetration in the country at an estimated 21% and the need to increase access to financial services, which is low at an estimated 25%.
The guide states that Mexico passed the Popular Savings and Credit Law (LACP) in 2001 to increase membership in Mexican cooperatives and to regulate the sector. Through the LACP, the National Banking and Securities Commission created the Popular Savings and Credit Entities (EACP). Mexican capital markets have grown consistently with a broadening investor and issuer base. Key considerations for foreign investors and microfinance issuers include:
- Mexico’s open trade regime and lack of restrictions on foreign portfolio investment;
- Restriction to foreign investments in Mexican credit unions;
- Separate legal structures for EACPs that are allowed to have 100% foreign ownership;
- Recent changes to issuance regulation that has increased transparency and facilitated greater access to capital markets;
- Securities market law, the issuers circular, and regulations by the securities exchange.
