Tag Archives: Guillermo Ortiz

Carstens to Banco de México; Cordero to Ministry of Finance

President Felipe Calderón finally made known his decision on economic policy management. This morning, he nominated Finance Secretary Agustín Carstens to be the next Governor of Banco de México, replacing Guillermo Ortiz who has led the central bank for the last 12 years.  Carstens’ nomination to a six year term must be ratified by the Senate. He also named Ernesto Cordero, who has been the Secretary of Social Development since 2008 as the new Secretary of Finance. Cordero, who has an MA in economics from the University of Pennsylvania, has been one of Calderón’s closest associates over the past decade. Cordero was head of legislative studies for the PAN from 2000-2003 when Calderón was the head of the PAN delegation in the Chamber of Deputies. In 2003, he went to Banobras and then the Ministry of Energy when Calderón headed those two agencies, and he was the candidate’s chief adviser on economic affairs during the 2006 presidential campaign and transition.  In his remarks today, President Calderón said the personnel changes:

will allow for a better harmonization of the relation between the federal Government and the Central Bank, in order to reach the twin goals of keeping low rates of inflation and … at the same time promoting the changes and transformations that will enable the acceleration of the rate of growth of our economy.

The President also named Heriberto Félix Guerra as the new Secretary of Social Development. Félix is a senator from the Sinaloa (on leave of absence), and has been the undersecretary for small and medium business at the Ministry of Economy. (Presidencia 12/9)

Deadline approaches for nominating Central Bank governor

Breaking a long silence, Banco de Mexico governor Guillermo Ortiz said he would be willing to serve a third term as head of the bank: “If the President and the Congress think that I can continue to be of service, I will do so with great pleasure; I will never say no to Mexico,” Ortiz said. The President is expected to make his nomination, which must be ratified by the Senate, this week.  Calderón has been believed to have a clear preference for putting Agustín Carstens in the central bank, with Ernesto Cordero taking over at the Ministry of Finance. However, as columnist Salvador García Soto noted, the trial balloon of Cordero’s name “was not well viewed by Congress—particularly by the PRI Senate delegation—or by influential Wall Street voices who lack knowledge of the current Minister of Social Development.” (Universal 12/3, 12/5)

Ortiz: tax increase won’t hurt economic recovery

Speaking at the IMF meetings in Istanbul, Banco de México president Guillermo Ortiz backed the government’s proposed tax package. Ortiz said that the tax increase was needed to bridge the fiscal gap and would not hurt the economic recovery. He called on the Congress to act “with responsibility” to keep public finances sound. Private sector groups, including the umbrella CCE business group and the American Chamber of Commerce continued to attack the proposals, saying they would hurt investment. (Universal 10/8, Reforma 10/12)