Dem
47
GOP
53
Mexico has something called the National Fund for Agricultural, Rural, Forestry, and Fisheries Development (FND); it's a program that allows entrepreneurial Mexican farmers to apply for loans to help get their farms up and running. However, quite a few folks have been exploited by third parties, and had their names used to apply for loans they did not receive. Add in the compounded interest, and the debts have become unpayable.
This week, President Claudia Sheinbaum announced that her administration would take action. And so, the debts of about 50,000 farmers will either be erased entirely or reduced substantially. It is expected that 99.5% of FND debtors will be free and clear in short order.
Sheinbaum's primary motivation, by all indications, was humanitarian. However, there is also something in it for the government. Many people who were trying to deal with their debts ended up entangled with, and targeted by, shady lawyers, which in turn clogged up courts. Others who were trying to deal with their debts turned to means of questionable legality, fueling corruption networks. So, the money the Mexican government is using to defray the debts will be recouped in reduced expenses for law enforcement and the judiciary.
If only the leaders of certain much wealthier countries could appreciate the value of humanitarian assistance, not to mention that the second-order effects of such assistance often serve to cover the first-order financial costs. In any case, three olés for Sheinbaum.
Have a good weekend, all! (Z)