Sheinbaum seeks to inherit a lower debt in CDMX

One of the objectives of the head of government Claudia Sheinbaum is to leave a smaller amount of indebtedness for the next state administration.

In a press conference, the local president explained that a debt reduction is being sought so that local public finances are under the least possible pressure and with that the economic growth of the city is ensured.

“We want to leave the next administration healthy finances, less debt (…) And then, deliver a city with healthy finances in 2024,” he said.

According to the capital’s president, to achieve this objective, three essential movements have already been made in terms of debt.

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In the first year there were 4,500 million pesos in debt, this year there are 4,000, and the last year it will be 3,000 million, and that in real terms means a debt reduction”, he indicated.

Added to this, he stressed that they are focusing on debt interest, which has increased due to the national and international context.

“Given the increase in international interest rates, this year we paid close to 2,000 million pesos more in interest on the debt compared to the previous year, and next year we estimate that interest rates will continue in a similar way, and that with respect to by 2021 it will also imply an increase of around 2,000 additional million”, he added.

According to the head of Government, the debt of Mexico City represents around 2.5% of the Gross Domestic Product (GDP) of the city, thus ranking as one of the entities that represents the least debt with respect to GDP.

“This is the measure that is normally used by national and international debt rating agencies. About half of the city’s debt is fixed rate and the other half is variable rate, and the city has a feature where debt is permanently rolled over,” he added.

It should be noted that Mexico City was the federal entity that contributed the most to the decrease in total subnational debt, as of the third quarter of 2022, with a decrease in its debt of 5,265.2 million pesos.