Mexico seeks to mitigate COVID-19 impact on finance, insurance

Mexico seeks to mitigate COVID-19 impact on finance, insurance

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Mexico’s Finance Ministry announced on Thursday new measures to lessen the effects of COVID-19 in the financial and insurance sectors. 

The ministry's banking and securities commission established new rules to make it easier to defer capital and interest payments to financial institutions. The new rules will apply to consumer, housing and commercial loans. Partial or total deferment of capital and interest will be for up to four months and could be extended another two months, the ministry said in a press release.

Similar rules will be developed for credit unions and other financial cooperatives, the press release said.

The insurance and sureties commission will implement temporary regulations along with the Mexican Association of Insurance Institutions to protect the insured and preserve the solvency of the insurance sector 

The measures include looser reporting rules and the extension of countersigning periods. They also include regulatory easing that will allow insurance companies to include risks derived from COVID-19 in policies that did not previously include them, and also extend the periods that the insured may have to pay premiums without penalization or cancelling of their policies, the ministry said.