Mexico | Recent increase in Infonavit delinquency owing to good accounting practices

The Institute's reclassification of 116,000 loans to the past-due portfolio, as they were considered to be outstanding, increased delinquency to 14%. This is an accounting change rather than a growing impairment of credit.

Key points

• Key points:
• However, if the extended portfolio is considered, the impaired portfolio reaches almost 18%
• Moving forward, there is concern over a scenario wherein formal job losses could affect 1.5 million workers. This could translate into an impairment of the portfolio, which would complicate Infonavit's financial situation and could put the health of other players' mortgage portfolios at risk
• The concept of the extension should be eliminated, since it has negative externalities on the mortgage loan market. Instead, a better mechanism to protect workers who lose formal employment would be unemployment insurance

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