MEXICO Law and Practice Contributed by: Alejandro Stamoglou, Jesús Pérez Alcántar and Julio Jiménez Manrique, Bello, Gallardo, Bonequi y García, S.C.
Bello, Gallardo, Bonequi y García, S.C. Avenida Santa Fe 428 Tower 1, 14th Floor Santa Fe Alcaldía Cuajimalpa de Morelos 05348 Mexico City
Tel: +52 55 5292 5232 Email: info@bgbg.mx Web: www.bgbg.mx
1. Private Credit Overview 1.1 Private Credit Market
investment, due to the risks posed by political influ - ence in judicial functions. These developments may influence investment deci - sions and the structure of corporate financing in the medium term. In summary, private credit continues to play a predominant role in Mexico’s overall financing landscape, particularly in segments where flexibility, speed of execution and tailored solutions are valued. 1.2 Interaction With Public Markets In recent months, Mexico’s public debt market has maintained steady activity, confirming its coexistence with the private credit market. However, access to public markets for Pymes historically has been limited due to high costs and regulatory requirements, which drives these companies to seek alternative financing structures such as private credit. Although the simpli - fied issuance framework introduced by the Mexican government in 2023 aims to reduce these barriers, its adoption has been gradual and has not yet produced a significant shift. Regarding syndicated loans, while they are common in Mexico, they are typically associated with large cor - porations that have access to sophisticated financing sources offered by domestic and international finan - cial institutions. Consequently, private credit contin - ues to serve as a key financing alternative for Pymes . In this context, there has been no material evidence of significant refinancing of private credit into public debt instruments over the past six months.
According to data from Bank of Mexico, by the end of the third quarter of 2025, total financing to Mexico’s private sector reached MXN11.26 trillion, of which 62.2% came from the non-banking sector, including private credit provided by non-bank financial inter - mediaries and alternative sources. Compared to the last quarter of 2024, the structure remains broadly unchanged: total financing declined by 1.8%, driven by a slight increase in bank credit (+1.3%) and a con - traction in non-bank credit (-3.6%). From a sectoral perspective, services and commerce stand out, along with food products, beverages and tobacco, as well as the “other activities” category, all of which exhibit a high share of non-bank financ - ing. This underscores the importance of alternative sources in key areas of the economy, largely driven by the challenges small and medium-sized enterpris - es ( Pymes ) face in accessing traditional bank credit, which fosters demand for more flexible solutions. On the political front, recent legal reforms have intro - duced greater regulatory and institutional uncertainty. For instance, in September 2024, a judicial reform was enacted that modified the mechanism for appointing judges, magistrates and Supreme Court justices. These officials are now elected through popular vote; a change that has drawn the attention of various inter - national organisations, not only in the field of human rights but also in areas specialising in law, trade and
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