He explained that although the uncertainty on this issue disappears, the problem of uncertainty caused by public policy decisions in general persists; “It is what has been generating this concern in the investment environment in the country,” said Correa.
Alejandro Hernández Bringas, president of the IMEF, said that Sunday’s result in the Chamber of Deputies leaves Mexico in a better position than if it had voted in favor of the reform.
He stressed that one of the issues that is keeping investors away from Mexico is the rule of law; so it would be favorable to generate a climate of confidence for investment.
Moody’s approves
The risk rating agency Moody’s predicted this Tuesday benefits for private electricity generators in Mexico after the failure of the constitutional reform of the electricity sector promoted by the Government to favor the state company to the detriment of private companies.
The decision is positive from a short-term credit standpoint, Adrián Garza, vice president and senior analyst at Moody’s Investors Service, said in a commentary.
This “because it restores the energy dispatch mechanism based on an order of economic merit and eliminates the risk of immediate changes in the terms of the energy purchase contracts,” Garza explained.
The Moody’s analyst highlighted that Congress prevented the proposed changes to three articles of the Constitution related to the energy sector.
“However, we estimate that the López Obrador government will continue to propose changes in the sector, especially in the generation of renewable energy, in order to strengthen the state company,” Garza said.
With information from EFE
