Debt renegotiation savings go to public works: Luis Navarro

Morelia, Michoacán.- The Government of Michoacán will not contract long-term debt, as previous efforts irresponsibly did, on the contrary, “the idea is to pay formally and punctually without neglecting policies and actions in favor of the population,” said the Secretary of Finance and Administration, Luis Navarro, when meeting with legislators who make up the Budget and Finance commissions of the State Congress.
“The renegotiation of the debt that we inherited from past administrations and that is currently around 19 thousand 173 million 600 thousand pesos, allows us monthly savings of more than 44 million 400 thousand pesos, resources that we preferably allocate to infrastructure works that promote local and regional development of Michoacán, “he said.
He said that as of July 31, 2023, the Government of Michoacán has reduced 324 million pesos to the global amount of long-term debt, which was initially with 15 banking institutions, and now is with eight, and at fairly competitive rates.
Luis Navarro highlighted the fact that it was possible to reduce, in negotiations with banks, the weighted average surcharge of interest payments from 0.55 percent to 0.50 percent, regardless of the fact that “we homologate the term, the payment profile and the contractual obligations so that the financial situation of the Government of Michoacan is more accessible.”
He emphasized that, through bank refinancing, the current state administration will obtain savings of 2.7 billion pesos, that is, an average of approximately 540 million pesos per year, which will preferably be allocated to infrastructure works throughout the state.
For their part, the Undersecretary of Expenditures, and the Director of Financial Operations, Rodrigo Cid de la Torre and Josué Ortiz Calderón, respectively, spoke about the evolution of the long-term debt by the Government of Michoacán, so that in the period 1996-2002 it amounted to 110 million pesos; in 2002-2008 it rose to 6,147 million; in 2008-2012 it stood at 16 thousand 826 million; in 2012-2015 it stood at 17,814 million; In 2015-2021 it totaled 20 thousand 38 million pesos. Currently, “through the refinancing we achieved, it is close to 19 thousand 174 million pesos,” they said.

Original source in Spanish