What economic aid is the Government of Mexico giving for the Covid?
In Mexico, the government’s measures to counteract the economic ravages of the epidemic consist of bringing the poorest population to federal and local social programs that provide financial support and create credits for micro, small and medium enterprises, in addition to scholarships for medical specialties.
Among the main beneficiaries of these programs are the elderly, all families with minors enrolled in the public school system, all public education students, people with disabilities, health personnel, micro-businesses, small businesses and medium businesses.
Additionally, each state implements its own plans and programs to counteract the economic and health crisis.
Thus, people who are going through a adverse economic situation they will be able to use these programs. Those that apply in general throughout the country are listed below:
Solidarity credits for Covid for companies
For all those family businesses or companies that are registered with the Mexican Social Security Institute (IMSS) and that did not lay off their workers during the first quarter of the year, 3 million credits consisting of 25 thousand pesos each to face the health crisis.
There are two requirements to obtain a solidarity loan:
- Not having reported any casualties during the months of the coronavirus crisis.
- Not having reduced the salaries of subordinates.
The support has an interest rate of 6% and a four-month grace period to start making the first payment. This can be settled in a period of 36 months with a payment of a monthly amount that will depend on the banking institution that grants it. In addition, stakeholders do not have to leave no garment under warrantyThe commitment that has been made in words will suffice.
The main beneficiaries of these credits are micro-businesses, including those dedicated to groceries, miscellaneous, inexpensive and aesthetic kitchens, and others that have between one to five employees.
It may also be requested by domestic workers, independent workers
Solidarity credit to the word for those who are in the IMSS for Coronavirus
Domestic workers who offer their services independently but who are registered with the IMSS, may also request a word credit of 25 thousand pesos, which can begin to pay after a period of three months and it can be settled in three years. The interest rate is also 6% and to request the procedure, people have to enter the IMSS website.
Wellness sessions for those who are not in the IMSS
For those who have a business and employ but are not registered in the formal system, they may request the Tandas para el Bienestar from the Ministry of Welfare and the Ministry of Economy, which consist of a first credit of 6 thousand pesos and that can be paid in installments after four months, which are free of interest rate. Once the first loan has been paid, a second loan of up to 10,000 pesos may be requested, and according to the payments made by the business owner, up to 20,000 pesos may be granted in his fourth application.
Among the requirements to request them are:
- Be between 30 and 64 years of age.
- A business with more than six months of operation, whose activity is not agricultural or mining.
- Be a resident of a municipality or locality belonging to the program’s coverage areas (medium, high or very high marginalization according to the classification of the National Population Council)
- Be a registered business.
- Fill in the official format that is downloaded from the program’s website.
- Current identification.
- Proof of residence no more than three months.
ISSSTE credit draw
The Institute of Social Security and Services for State Workers (ISSSTE) carried out a draw for 32 thousand 222 loans corresponding to an expense of close to 1.8 billion pesos. Those who can participate in this raffle are state workers, retirees and pensioners. The results will have to be consulted on the sipenet.issste.gob.mx page with the registration number for the draw and the credit will have to be collected in person at the office indicated.
Housing loans for Covid
For those interested in expanding, improving or building a home in times of coronavirus, they can get a loan from the Institute of the National Housing Fund for Workers (Infonavit), the Housing Fund of the Institute of Security and Social Services of the State Workers (Fovissste) and the Ministry of Urban Development and Housing.
The foregoing as part of the measures to counteract the health crisis and the fall in oil prices, in this program houses and apartments participate and it has the objective of reactivating a part of the economy, mainly that of the most vulnerable, since if people begin to fix their assets they will request the work of the master bricklayer and other workers related to the construction industry.
So far the Fovissste dispersed 20 thousand credits corresponding to 13 thousand 300 million pesos. The economic impact of this financial institution indicated that the measure will help create at least 223 thousand 401 direct and indirect jobs by this institution.
Those who wish to build a house with the Fovissste credit will have to enroll in the program “Build Your House” which consists of a credit line of one million 133 thousand pesos so that the borrower makes a home according to their. The interest rate is between 4% and 6% per year and the construction term is one year.
Health workers may also obtain a special credit from the State through “Your waiting house”, As a reward for their work, for this program, 2,500 home loans, of which one thousand will be for self-construction housing and one thousand 500 for new housing construction.
For its part, Infonavit offers a new loan where they provide 125 thousand pesoss when previously the resource granted was 54 thousand pesos. According to the institution, the borrowers will be able to use the money to buy materials, equipment and labor payment, and in this way it is intended to activate the local economy.
So far, the dispersion of 500 thousand credits that will finish being granted at the end of 2020.
To apply for the support, workers will have to prove four months of employment affiliated with the IMSS or the ISSSTE and the credits consist of fixed payments without a mortgage guarantee. The benefit will be available from May 28.
Advance pension for the elderly and people with disabilities
To prevent people vulnerable to contracting Covid-19 from leaving their homes, the government of Mexico opted for advance financial resources to those enrolled in the Wellness Programs which are pension for the elderly and financial support for disability, they were deposited in the month of March equivalent to four months, which is an amount of around 5,000 pesos and after the first deposit, in July again, they will be deposited another four months so that they do not leave their homes, corresponding to July, August, September and October.
Advancement of Scholarships for Student Welfare
An advance of two months (May and June) of the scholarships for students of the public system of the basic level was made and the way in which young people from high school and public university will receive their scholarship was modified, now they can be holders and can manage their own bank account even if they are minors, thanks to the modification of the Credit Institutions Law. As of this modification, students may have access to remote account management during the pandemic through telephone banking, Internet banking and mobile banking.
In the Mexican capital, the months of May and June were brought forward with My Scholarship to Begin and School Supplies and School Uniforms, which is carried out by means of a bank card and personal bank account.
Economic support to the field Sowing Life in coronavirus
It is about the expansion of said already existing program so that farm workers receive more financial support to counteract the effects of the coronavirus crisis. The measure consists of opening 540 thousand new places in the program for sowers can work around 500 thousand hectares, specifically in the state of Hidalgo and Puebla.
People who sign up for the program will receive support of 5,000 pesos per month, of which 500 pesos will be used as savings, being 450 pesos for a savings account of a financial institution and 50 pesos for the Welfare Fund.
To request it, you must comply with:
- Be of age.
- Sign application for admission to the program.
- Simple ID copy.
- Simple copy of CURP.
- Have a 2.5 hectare production unit available for an agroforestry project.
In addition to this, the federal government announced the construction of Wellness Banks in rural communities that lack banking entities such as Oaxaca, Tlaxcala, Puebla and Hidalgo; It is about 700 branches that will also provide employment while they are being built.
Similarly, to create more jobs, a highway will be created between Tenango de Doria and Pahuatlán, Puebla.
Scholarships for medical specialties
Derived from the collection of taxes during the season of the epidemic in Mexico, the government grants 30 thousand new scholarships to study medical specialties abroad so that in a next epidemic, the country will not again lack these professionals as has happened in the crisis by coronavirus.
The scholarships will be directed to students who wish to pursue a specialty that is not taught in the country or for when they do not reach quota in any of the nation’s medical schools. Preference will be given to specialties that have to do with the diseases that most afflict Mexicans such as diabetes, heart and respiratory diseases.
Other aid and measures from the Mexican government to counteract the crisis
Other guidelines that are used to combat the health crisis are the collection of taxes from large companies, the reduction of salary and reduction of the bonus of public servants of managerial positions with high incomes, the cancellation of subdirectorates in the Secretariats and the creation of two million jobs through the activation of the construction industry during the red and orange traffic lights, and the start of the Mayan Train works.
Government aid will also be directed to taxi drivers, public transport drivers and employees who are in a union, once their census ends.