Exclusive outtakes from industry leaders
A proposal to overhaul one of the government’s pension systems was cleared by congressional committees this week in a rare agreement between Mexico’s top political parties. The legislation introduces private retirement accounts for public-sector workers but still needs approval from the Congress lower chamber and Senate.
If passed, the new pension system could push the government to take extra debt but would bolster public finances in the long term.
Mexico’s Deputy Finance Minister Alejandro Werner spoke at the Reuters Latin American Investment Summit about the benefits of the proposed changes to the pension system.
From swanky lofts in the capital to modest houses for families all across the country, Mexico’s home building industry had never seen such a bonanza before. Thanks to a government program to spread the reach of mortgages to low-income earners and banks granting 30-year loans for the middle class to buy houses, the building sector is not likely to ease its thriving pace soon.
Homex, one of Mexico’s largest homebuilders, plans to sell around 16 percent more homes in 2007 as it bets on the ongoing strength of the mortgage market, the company’s Chief Executive David Sanchez-Tembleque told Reuters Latin American Investment Summit.