Secured Creditors' Rights in Mexico
(Protección en Mexico de los Derechos de los Acreedores)
Legal Corner, by Gil Anav (8/15/2004)
One of the greatest problems facing the Mexican economy is the difficulty businesses have in obtaining financing. Among the causes commonly cited for the dearth of available financing is the lack of respect for creditors' rights in the Mexican legal system, in particular the right of creditors to rapidly obtain control over goods given as collateral by debtors after the debtors' default on their loan obligations. The legal obstacles faced by creditors in Mexico are in sharp contrast to the procedures that exist in other countries such as the United States, where creditors can enforce their rights more rapidly and easily, thus increasing their ability and desire to loan funds.
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