Bankers Trust New Laws Will Boost Legal Certainty

11:13 20/09/2024 - PesoMXN.com

Mexican bankers are looking forward to gaining clarity from the new secondary laws following the approval of the judicial reform. Julio Carranza, president of the Association of Banks of Mexico (ABM), noted that it was necessary to carry out this reform, but without placing the entire focus on a single branch of government.

"The secondary laws of the judicial reform will be crucial, as they will help us define and adjust certain points that can lead to a successful reform, generating the certainty we long for," Carranza expressed during the Prosa Forum 2024. He commented that they expect discussions around regulations prioritizing the competence of judges and the processes for selecting them, and that the banking sector has maintained dialogue with the authorities. "It is important to have faith and patience that the arrival of the new government will provide the certainty that has been absent, not because it hasn't been wanted, but because it's part of the process of this judicial reform," he mentioned to the media. He added that the banking sector is collaborating with the new government to voice their concerns and that they trust there will be communication, as promised by Claudia Sheinbaum. "Dr. Claudia Sheinbaum has affirmed that the new government will be one that listens and engages in dialogue," he reiterated.

Negates Negative Impacts on Investment

The president of the ABM acknowledged that there is some anxiety due to the recent approval of the reform, though he believes that the instability in the exchange rate is more due to uncertainty than distrust in Mexico. "I don't think the country is stagnant; on the contrary, I see it moving forward; foreign investment continues to flow, indicating that we have an excellent opportunity in Mexico today," he stated. On September 15, the government of Andrés Manuel López Obrador published the judicial reform in the Official Gazette of the Federation (DOF), and since September 16, the constitutional change has begun paving the way for the electoral period to elect judges, magistrates, and ministers through direct voting. This publication followed the declaration of constitutionality of the reform by Congress, supported by more than 17 local congresses that backed the adjustments proposed by deputies and senators in the judicial area.

No Set Dates for Secondary Laws

For now, no date has been set for the development of the secondary laws related to the judicial reform, given the discrepancies among members of the ruling party. Gerardo Fernández Noroña, president of the Senate's Board of Directors, indicated last Friday that the election of members of the Judiciary could take place in June 2025 without the regulatory laws. "In fact, we need to issue the call for the election soon; it's a task we must complete, we're a bit behind, and the secondary legislation is an important challenge. It's possible that the secondary laws will come shortly after the election," Noroña recently added. In contrast, Ricardo Monreal, Morena's coordinator in the Chamber of Deputies, asserted that Congress will indeed take charge of drafting these regulations within a maximum of three months, as established in the transitional provisions. "The electoral bodies will start working in the coming days, and all deputies and senators will collaborate to establish the laws governing the processes of 2025 and 2027. We have time, but we shouldn't take it for granted to draft these institutional documents resulting from the constitutional reform and its transitory provisions," he concluded.

The bankers' anticipation regarding the new secondary laws reflects a desire to stabilize the economic environment. The judicial reform is a crucial factor in attracting investment and fostering a more trustworthy business climate. As this reform is implemented, it will be important to maintain a focus on the transparency and efficiency of the judicial system, as this could become a catalyst for sustained economic growth in the country.