“The Government of the State of Yucatán obtained the best rate granted to long-term financing for a Mexican state by a commercial bank. This was possible thanks to the administrative discipline promoted by Governor Mauricio Vila Dosal and for the total transparency in the bidding process”, explains the Secretary of Administration and Finance, Olga Rosas Moya.
After the bidding process that was convened on August 16, it was Citibanamex’s proposal that gave the Yucatecan the best conditions for the financing of 2.6 billion pesos, in a 20-year period, for the “Safe Yucatan” project, approved in July by the Congress of the State.
In the bidding process for this financing, bids were received from 7 different financial institutions, which offered 4.4 times the requested amount. The proposal awarded to Citibanamex offers an interbank balance with an interest rate (TIIE, reference) + 25 bps; that is, 60% less financing obtained by the state in 2011, 2013, 2016 and 2017. Another important aspect is that it opens a window of opportunity to improve the conditions of current financing.
The financial structure, which is expected to be rated with a “Triple A” for its strength, contemplates that the debt service in relation to state revenues be similar every year, without leaving a greater burden on subsequent administrations.
Considering the contracting of this new financing, the State maintains a sustainable indebtedness according to the indicators of the Alert System of the Ministry of Finance and Public Credit. It also has moderate levels of debt service, robust collection of own taxes, high growth of state GDP and financial indicators according to its credit rating.
Roberto Suárez Coldwell, Treasurer of the state, said that at lower credit risk, Yucatan can access better financial conditions and better rates, such as that obtained this time. These are clear indicators that confirm the confidence of financial institutions towards the actions undertaken by the State Government and the competitive process carried out by the Ministry of Administration and Finance.
In the coming weeks, the contracting of financing with Citibanamex will be finalized and registered with the Ministry of Finance and Public Credit.
“Yucatán Seguro” includes the installation of 3,527 new surveillance cameras in different parts of the State and 1,000 additional new neighborhood cameras; 119 highway arches, as well as 6 high-tech drones and an aircraft specialized in surveillance for air operations.
Also, the project that seeks to guarantee the safety of Yucatecan families contemplates modernizing the current network of traffic lights to one with intelligent features, as well as 4 specialized vessels to protect the coast, among other investments and actions.
The Yucatan Times Newsroom