HIGHLIGHTS-Interview with Mexico Finance Minister Videgaray
WASHINGTON, April 20 (Reuters) - The following are highlights of a Reuters interview with Mexican Finance Minister Luis Videgaray on Saturday. For a story on the interview, see . ON FISCAL REFORM IN MEXICO: "We've made a decision not to talk about fiscal reform yet, not even to the ratings agencies. It's important to have a good technical design but also to be quite sensitive to the political needs of the fiscal reform. The first to know about the design of the fiscal reform ... should be Congress." "We have some very good progress on what we are planning to do on fiscal reform .. (but) we are not talking about it yet." "It will be large." ON NEGATIVE SPILLOVERS FROM MONETARY EASING IN OTHER COUNTRIES: "It is a fact that unconventional, prolonged monetary easing may lead and may already be leading in some countries to an unsustainable appreciation of asset prices and these are negative side effects to what was the proper response to an unprecedented crisis." "It's clear that advanced economies are not ready yet to abandon this state of monetary easing and it is in the best interest of developing countries for advanced economies to continue to support these policies in terms of growth." "It's not only about restricting advanced economies in their monetary policy but it's also about how developing countries react in terms of their own regulation. It's a challenge and it's going to continue to be a challenge." ON U.S. FISCAL CONSOLIDATION AND MEXICO'S GROWTH: "We are quite concerned about a low growth scenario in the U.S. Our economy is significantly more linked to the U.S. than to any other economy, so it's in our best interests for the U.S. to continue growing." "A degree of flexibility is needed as long as the objective of fiscal consolidation remains. So therefore while Mexico is in a much better position itself on the fiscal front, you need to be careful not to hamper the growth prospects of advanced economies, particularly the United States." ON THE VALUE OF THE PESO: "It has to do with expectations for the Mexican economy, the strength of future growth, but it also has to do with monetary conditions elsewhere so it's hard to pin down how much of one effect is domestically driven and how much is an effect of the ... liquidity abundance coming from elsewhere." "Japan's decision to ease monetary policy is also affecting everybody. Our thinking is that the peso is set in a free-floating regime and our involvement is to make sure the market works well and in an orderly manner." ON USING PUT OPTION AUCTIONS TO REIN IN THE PESO: "We're open to all policy actions depending on the circumstances, but it's not something that was considered given the macroeconomic conditions at this meeting." ON EFFORTS WITHIN THE G20 TO COMBAT TAX AVOIDANCE: "We were hoping for more specific language. We were hoping for a commitment to adopt this mechanism, or at least express an interest, by our next meeting in St. Petersburg. That unfortunately was not part of the communique." "We need to have multilateral levels for information exchange." "This would be extremely useful for a small, open economy like Mexico."