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Canada keeps interest in Mexico for future investments

Karla Salinas | 03.02.2015

Despite the fall in oil prices, Canadian entrepreneurs remain interested in Mexico, largely by the attractiveness of structural reforms, especially the energy reform. However, if the country advances in terms of security, more investments will be on their way, said the director of Export Development Canada (EDC), Peter Hall.

Despite the fall in oil prices, Canadian entrepreneurs remain interested in Mexico, largely by the attractiveness of structural reforms, especially the energy reform. However, if the country advances in terms of security, more investments will be on their way, said the director of Export Development Canada (EDC), Peter Hall.

The approved reforms are positive for the country, even if in these moments when some changes need to be implemented, the Mexican government faces a decline in revenues, since a third of these come from oil and oil prices plummeted in 50% compared to the final numbers in 2014, presented the Canadian official at the conference organized by the Chamber of Commerce of Canada, during Hall's visit to Mexico.

Although he stated that Canadians investing in Mexico do it with long-term expectations, he said that "as they improve their security situation, the country will become more attractive". In economic matters, he established that there is strength and thus EDC estimated that in 2015 the country will grow between 3.5 and 3.8%.

For 2015 it is expected to receive loan applications from Canadian firms seeking financing to develop projects in Mexico, so it is contemplated to maintain the level of credits granted in 2013 by EDC of 1,200 million dollars, especially for the automotive sector, oil and gas, said the representative for our country in the Canadian corporation, Teresa Nizzora.

Even though EDC has not yet closed the 2014 fiscal year , it's expected that the figures remain above the 1, 200 million in said year. Besides that it annually receives another additional billion dollars for insurance, bails, risk mitigation products, among others.

The 2, 500 million dollars that were granted in loans and the selling of insurances and other instruments, benefited more than 700 Canadian companies, some invested in energy projects or were providers of parastatals as Pemex or CFE.

Nizzora pointed out that with the reforms, there's been more requests for information on financing for developing projects in Mexico.

Despite lower oil prices, Canadian companies observe that there is opportunity in the field with 115 billion of reserves still in the ground. "That's what firms see, future expectations," he said.

Source: http://www.eluniversal.com.mx/

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