Thursday, January 26, 2023

70% payment for interest on Baja Hacienda foreign loan

Mexico City. The anticipated repurchase of a bond with an outstanding amount of 1.2 billion euros (24.77 billion pesos) is due to be completed today, and whose maturity was set for January 15, 2025, the Ministry of Finance and Public Debt said it would reduce the amortization payment to the next 70 percent reduction in the federal government’s external debt during the first year of administration.

According to the 2022 Annual Financing Plan, 2025 was the most burdensome period for disbursement of interest on external debt in this entire century. In the same document, but with projections to 2023, the maturity profile shows reduced immediate pressure in interest payments.

A few weeks ago, the SHCP announced that “next Thursday, December 29, the initial repurchase of bonds with an outstanding amount of 1.2 billion euros, with a coupon rate of 1,375 percent and maturity on December 15, will take effect.” January 2025”.

“Thanks to this initial repurchase operation, the amortization payment of the federal government’s foreign debt scheduled for 2025 will increase to $1.28 billion, compared to the $4.24 billion scheduled earlier this year”, the agency elaborated. Statement.

With a view to continue improving the maturity profile of external market debt, the federal government has undertaken 10 refinancing operations through initial repurchases between July 2019 and December 2022.

Thus, Treasury explained, a historic amount of $24,160 million in external market debt has been refinanced during the current administration.

Nation World News Desk
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