Mexico Financial Sector Assessment ProgramInfrastructure Finance and Capital Markets -- Achievements and Challenges

Format:

Book

Government document

Author/Creator:

World Bank Group International Monetary Fund.

Series:

Financial Sector Assessment Program

World Bank e-Library.

Language:

English

Subjects (All):

Capital Markets and Capital Flows.

Financial and Private Sector Development.

Infrastructure Economics and Finance.

International Financial Standards and Systems.

Local Subjects:

Capital Markets and Capital Flows.

Financial and Private Sector Development.

Infrastructure Economics and Finance.

International Financial Standards and Systems.

Place of Publication:

Washington, D.C. : The World Bank, 2016.

System Details:

data file

Summary:

Mexico's challenges in infrastructure finance can be framed along similar lines as other Advanced Economies (AEs) and large Emerging Market Economies (EMEs). Mexico is particularly well placed to make capital markets a reliable financing source complementing bank financing. Its capital markets are relatively mature, there is sufficient critical mass of long-term domestic institutional investors, and there is a relevant track record of innovative solutions for infrastructure financing from which to build. Section B of this Technical Note assesses the degree of maturity of the Mexican capital markets in those aspects that are most relevant for infrastructure financing. Section C discusses the different elements of the infrastructure financing ecosystem taking stock of the PPP framework and financial innovations that have been developed, with emphasis on impact, expected developments and potential improvements. Section D, discusses the role of development financial institutions in mobilizing private sector financing with emphasis on Banobras and Fonadin. Finally, section E concludes and provides a set of recommendations