In the daily, El Universal, the following government actions for yesterday-today were reported. Anyone who knows Spanish financial vocabulary better than I, please add comments, improved translation, and explanations. Here is the link to the original article.
Measures taken to provide liquidity
By José Manuel Arteaga and Ricardo Jiménez
El Universal
Tuesday, October 28, 2008
The Secretary of Hacienda (treasury, más o menos) and the Bank of Mexico presented a series of accions to provide liquidity and stability to the national financial market in the face of the world financial crisis.
In a joint communique they said that the federal government will increase increase financing anticipated in 2008 and 2009 with the World Bank and the International Bank of Development to a total of five billion dollars.
The Bank of Mexico will establish a schedule of auction of an interchange of interest rates up to 50 million pesos with the purpose of reducing portfolios of long term interest instruments for auctions of securities for t
The government will reduce the issuance of long term interest instruments for auction of securities for the rest of the fourth trimester of the year by an amount of 14,450,000,000 pesos and an increase of 4,500,000 pesos in the auctionof CETEs [I think government bonds] [paid in installments.]
A program will beiniciated for the repurchase of instruments issued by IPAB [government insurance agency for small and medium sized bank accounts] for an amount up to 150 billion pesos.
The amount for the auction of bonds [bonos] is reduced and financial institutions can undertake operations of purchase and sale of govenment stocks/shares [valores] with Investment Societies that form part of the same financial group.
Salvador Orozco of Santander [Santander-Serfin, Spanish owned bank in Mexico] said that they are trying to avoid interest rate pressure and to reduce losses.
In other Mexican financial news, the Secretary of Labor reported that, due to the crisis, Mexico won't be able to create more than 300,000 jobs a year until 2010.
The Mexican stock market was up so far this morning.
