In a press conference, President Andrés López Obrador accused companies of evading responsibility in labor matters.Andrea Murcia (Cuartoscuro)
Citigroup's exit fell like a bucket of cold water in Mexico, at a time when the business climate lacks confidence and economic growth prospects are being revised downward. The global bank, one of the largest in the world, said in a statement that it would put up for sale the consumer banking business of Banamex, an emblematic institution of the country that it acquired in 2001, and would remain to work only with institutional clients. The reason, he assured, is that this business is no longer in line with his new strategy.
Citi joins JPMorgan, a bank that announced the closure of its private banking operations in Mexico last year, and Santander, which took a first step in May by delisting on the Mexican Stock Exchange (BMV). On Wednesday, the Ministry of Finance issued a statement that directly addresses speculation and questions from the sector: "Citigroup's decision does not affect its confidence in Mexico," it says by way of title. Citigroup "timely notified the country's tax authorities of its decision to exit the retail and corporate banking businesses as part of its global strategy," he added.
The way in which Citi made the announcement is very atypical of this type of decision, says Alexis Milo, consultant, former official of the Federal Government and former chief economist of HSBC and Deutsche Bank in Mexico. “It is true that there is a global tendency for banks to focus on areas and regions and sectors where they are most competitive,” says the economist, “but we cannot help but see that Citi is putting Banamex up for sale. , a long-standing bank in Mexico, emblematic, which was a very important part of their income for a long time ”.
What is more common, when banks of this caliber make this type of announcement, is that a potential buyer is also announced with whom conversations have already begun. That Citi has decided to announce that it is putting Banamex up for sale in this way suggests that the announcement is also for the authorities, both in Mexico and in the United States, its home country. "I take this as an announcement or a sign that a bank like Citi sees that Mexico, or the Mexican market, is starting to lose appeal," adds Milo.
This week, the analysis division of investment bank Bank of America (BofA) lowered its forecast for gross domestic product (GDP) growth for the country from 2.5% to 1.5% this year, due to high uncertainty. that the private sector lives, derived from the policies of the Federal Government that seek to give priority to the energy companies of the State. This is creating such uncertainty that companies are investing too little, which contributes to economic stagnation.
"The high uncertainty is related to a change in the institutional framework in various sectors, but more markedly in the energy sector, with an important reform in Congress," says the BofA report, signed by chief economist Carlos Capistrán. The energy reform "will take many months this year to resolve and there is also a recall referendum in the second quarter," he adds. President Andrés Manuel López Obrador has said that his Government will be one of transformation and “every transformation process implies change and therefore uncertainty. High uncertainty is likely to be one of the reasons why investment is very low, "says the report.
"This Administration has sent a signal to companies that they are very unprotected," explains Milo. In his daily press conferences, López Obrador has made companies in different sectors the target of criticism, even though he claims to have a good relationship with them. “I believe that many large companies feel very insecure, very exposed, vulnerable. They feel that they cannot go to the government if they face a problem or complication to ask for help ”.
Administrations in the past, says Milo, had a close relationship with companies, which generate jobs, to prevent them from leaving.
The links between the economic powers and the Government are highly criticized by López Obrador and the Secretary of the Treasury, Rogelio Ramírez de la O, who argue that, to avoid corruption and work to eliminate poverty, these powers must enjoy a certain distance .
"This government gives the signal that if something bad happens to you, you have to go," says Milo.
Citi is no stranger to scandal.
In 2015, banking regulators in the US and the state of California fined a Citi subsidiary, Banamex USA, $ 140 million for not having adequate controls against money laundering.
Citi closed the US business and paid $ 97.4 million to close the investigation.
“The business for the big banks in Mexico is not the most profitable, and, on the other hand, it does represent a high risk for their global brand” explains Milo, “any day of these there is a scandal, it turns out that they gave a loan to whoever They should not have been given it or they received deposits that they should not have received and the Government is not there to help them, so I think that many banks are scared ”.
Subscribe here
to the
newsletter
of EL PAÍS México and receive all the informative keys of the current situation of this country