Treasury slashes next administration’s foreign debt payment by 70%
The Ministry of Finance and Public Credit (SHCP) reported that will decrease by 70% the federal government’s external debt amortization payments scheduled for the first year of the next administration.
He revealed that with the redemption of two bonds made this year, one denominated in dollars and the other in euros, the debt reduction by 2025 will be equivalent to $3 billion less.
He explained that the Government of Mexico acquired the commitment to release the external debt payment pressures on the next administration, which is why he announced that next Thursday, December 29, the early redemption of a bond with an outstanding amount of 1.2 billion will be effective, with a coupon rate of 1.375 percent and original maturity on January 15, 2025.
A total of approximately $14 billion has been refinanced
The Treasury explained that thanks to this early redemption operation, the amortization of the external debt of The federal government programmed for 2025 will go to one thousand 280 million dollars compared to the 4 billion 240 million dollars programmed at the beginning of this year.
The agency headed by Rogelio RamÃrez de la O, reported that this operation is in addition to those executed by the Treasury, between July 2019 and August of this year in the international markets, which, thanks to the early redemption of a total of nine external bonds, a total amount of approximately 14 thousand 160 million dollars were refinanced.
Finally, the SHCP He assured that this reduction of the external debt “is the biggest refinancing carried out by an administration”.
Source: El Heraldo De Mexico
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