In Brothers’ opinion, “revision of repression” should be Mexico’s first priority. The government should strengthen prudential supervision and regulation and address problems relating to the preferential credit regime and distressed debtor-creditor relationships. The agreed-upon rate became, in fact, a mechanism for subsidizing commercial banks, with an unfavorable impact on government finances at a time when considerable effort was being made to achieve a major fiscal correction. A sufficiently large market for government securities and reduction in the fiscal deficit were important prerequisites for financial liberalization: without them, pressures for continued reliance on interest rate ceilings and high reserve requirements to obtain necessary financial resources would have been irresistible. A flexible and competitive financial system is also required to foster structural changes in the economy. The financial system can play a very important role in fostering and supporting structural changes through its influence on the mobilization of resources.