Sofomes, an opportunity for growth with Plan Mexico

In the report, "Sofomes Can Be Key to Plan Mexico," the firm explained that Plan Mexico includes several initiatives that seek to expand financing sources for micro, small, and medium-sized enterprises (SMEs).

"The initiative is positive for Sofomes, since SMEs are, by volume, their most important clients, and they will have greater access to funding to expand their commercial credit portfolios," states the study conducted by analysts Vicente Gómez and Enrique Reyes Vilchis.

They explained that the Sofomes have been going through a difficult financing situation for the past three years, and that Plan Mexico could help them access greater financing in 2025.

They highlighted that among the actions proposed by Plan Mexico is the launch of the Development Banking Fund for SMEs next February.

The benefits for Sofomes derived from this fund will depend on how development banks channel the resources contained therein, which is generally through financial institutions, which provide credit to companies.

"If this is the case, it would drive a continued recovery in the volume of the Sofome loan portfolio," the analysts noted in the report.

They commented that although the Sofomes went through a period of turbulence that affected their ability to access sources of financing, the entities continue to be an important vehicle for SMEs, since they have a marked inclination towards commercial credit, especially the Non-Regulated Sofomes.

They clarified that, since they are not authorized by regulation to collect deposits, Sofomes use sources of financing that are more sensitive to risks from market events, as happened with large Sofomes that entered bankruptcy and liquidation processes.

However, there are Sofomes that found financing through portfolio securitizations.

"We believe that asset-backed debt issuance (ABS) will continue to be an important source of funding for these entities in 2025," Moody's experts commented.

They noted that the recent reform to the Securities Market Law, which seeks to reduce securities underwriting costs by simplifying the timeframes, requirements, and administrative steps for obtaining financing on the stock exchange, could represent another source of funding for Sofomes, not only debt but also capital.

"This is a positive development for 2025, which would further ease financing conditions for the sector," they acknowledged.

However, there may be obstacles to this type of financing, given the country's weak legal framework, administrative and regulatory burden, and the idiosyncrasies of corporate governance issues in various sectors of the economy.