- Title: Spain’s BBVA to invest $1.5bn in Mexico
- Date: 2nd March 2017
- Summary: MEXICO CITY, MEXICO (MARCH 02, 2017) (REUTERS) ****WARNING CONTAINS FLASH PHOTOGRAPHY*** EXTERIOR OF NATIONAL PALACE BBVA PRESIDENT FRANCISCO GONZALEZ ENTERING NEWS CONFERENCE WITH MEXICO FINANCE MINISTER JOSE ANTONIO MEADE MEDIA AT NEWS CONFERENCE GENERAL VIEW OF NEWS CONFERENCE GONZALEZ AND MEADE AT NEWS CONFERENCE LOGO FOR MEXICAN FINANCE MINISTRY (SOUNDBITE) (Spanish)
- Embargoed: 16th March 2017 23:20
- Keywords: banking finance Spain Mexico invest BBVA
- Location: MEXICO CITY, MEXICO
- City: MEXICO CITY, MEXICO
- Country: Mexico
- Topics: Economic Events
- Reuters ID: LVA001669RARN
- Aspect Ratio: 16:9
- Story Text:Spanish banking giant BBVA announced at a Mexico City news conference on Thursday (March 02) that it will invest $1.5 billion in the Latin American country, expressing confidence in its economy amidst blowback from its largest trading partner under US President Donald Trump.
BBVA reported the billion-plus investment will be in software and intelligence as well as in operations to make procedures at its Bancomer bank in Mexico more efficient.
Speaking along Mexico's Finance Minister Jose Antonio Meade, the additional investment announcement will take the company's financial commitment in recent years and the years ahead closer to $5 billion.
"We will continue to invest in this country. We have invested $3.5 billion in recent years; we are going to invest $1.5 billion more in the coming four to five years. It's a very important project and hopefully we will have more margin to buy another bank, but the Finance Ministry probably won't let us because we already have a very significant (market) share," said BBVA President Francisco Gonzalez.
Amidst national concerns over the future of Mexico's NAFTA free trade deal with the United States, which represents the bulk of the country's exports, Gonzalez talked up the resilience of the Mexican economy to withstand any short-term consequences.
"In the worst scenarios that there will be a cancellation do not worry because Mexico will react. There are many possibilities to do many things in this country. I don't think it will be the end of the world. The treaty is in place and there are good things but without this treaty, Mexico has other possibilities which are not in the contract. The world is very big and sure in the short term there are consequences but in the long term I don't think these consequences will not be so important," added Gonzalez.
Spain's BBVA group has a strong presence in Mexico. After years of austerity in Europe, BBVA looked to Latin America to boost its financial foundations. Revenue in Mexico alone represents some 30% of the total revenues of BBVA worldwide, according to official figures. - Copyright Holder: REUTERS
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