Julio Escandón, general director of Banco Base, said in an interview prior to the 87th Banking Convention that tax incentives fall short of the country’s potential to attract companies and new investments.
Among the challenges that the next administration will face in the country will be to take advantage of nearshoring, and for this a clear policy of attracting foreign investments is necessary, because without promotion this unique opportunity can be lost, said Julio Escandón, general director of Banco Base.
In an interview prior to the 87th Banking Convention, Escandon asserted that the tax incentives announced in October of last year fall short of the country’s potential to attract companies and new investments.
“We are letting go of an incredible opportunity, a huge opportunity due to this lack of clear definition of promoting foreign investment in the country. “I would hope that in the candidates’ speech there is an active, proactive promotion of the country abroad so that investments come,” he said.
In addition to the above, conditions must be guaranteed to investors in terms of infrastructure, energy and security. On this last point, he stated that in the meetings he holds with businessmen interested in reaching the country, they always ask about the insecurity in some areas of the nation.
“It is a serious problem. This issue has to be not just talked about and commented on but with very clear axes of what I am going to do, how I am going to do it, and how I am going to provide that security, not only to foreign investors but also to local companies.”
Escandón projected that exchange rate coverage could increase due to the period of volatility expected for June when the presidential votes will be held since even though the market “has discounted the election, there is always noise.”
He forecasted the exchange rate at 17.50 pesos per dollar, a “natural” level for an election year, he said. Meanwhile, for November, with the elections in the US, he anticipated greater movements in the exchange rate, and it would be around 18.50 pesos per dollar.
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