The interest payment of the public debt of Mexico shoots up 46%

“At the end of the quarter, the financial cost exceeded the forecast by 14.100 million pesos due to the higher interest rates observed worldwide. However, this did not represent significant pressure for the stability of public finances nor did it put at risk the execution of the budgeted expenditure”. asserted the unit in charge of Rogelio Ramírez de la O.

The report observed a drop in the payment of Participations to the federal entities of 5.6% real per year, compared to the first quarter of 2022, previously, in the economic pre-criteria for 2024, the Treasury reported that a higher cost is expected for the payment interest on the debt, so they will cut resources to the states for 23,525 million pesos this year.

“Although interest rates have adjusted rapidly and the magnitude has been greater than in previous monetary adjustment events, the increase in financial cost has been equal to or slightly less than similar episodes of monetary adjustment,” said Gabriel Yorio, Undersecretary of Finance, in a press conference.

He explained that the Treasury expected this financial cost to be higher, and that this does not represent significant pressure for the stability of public finances.

“It does not put the execution of budgeted spending at risk, and so far this year the government has been recognized with three international awards for the management of public debt policy, which has recognized the commitment to sustainability, both environmental, social, financial and with the economic growth of the country”, added the official.

He explained that at the end of March the balance of the public sector debt stood at 45.6% of GDP and registered a real annual decrease of 0.2%. He asserted that our country has a solid debt portfolio, and that 75.5% of the internal debt, in government securities, is denominated at a fixed rate and long term; “Therefore, the debt that was contracted before the monetary adjustment has not reflected an increase in the financial cost, and this is reflected in a portfolio with a low and controlled risk exposure,” added Yorio.