Veracruz settles historic debt of over 1,500 million pesos; Rocío Nahle announces end of securitization

Veracruz has successfully extinguished a historical debt of over 1,500 million pesos tied to the securitization of federal budget allocations. The debt, initially contracted under the administration of Fidel Herrera Beltrán, had become unmanageable for 199 municipalities.

The original securitization was for 1,208 million pesos. However, due to its financial structure, which included debt indexed to UDIS and interest rates above market norms, municipalities had already paid 2,573 million pesos. Without this intervention, they would have faced another 2,266 million pesos in payments until 2036.

Governor Rocío Nahle García announced the complete payoff, utilizing funds discovered within various trusts. This allowed the state government to contribute approximately 500 million pesos to complement the 1,085 million pesos recovered from non-transparented accounts within the trust. "We recovered the money. Today all municipalities are settled; they don't have to pay a single peso," Nahle stated, confirming the debt's termination.

The recovered funds came from three accounts within the trust: participations, support, and reserve fund. These resources had not been transparently allocated to either the municipalities or the state. The state government's contribution finalized the obligation, canceling the payment scheme that was set to continue until 2030. This securitization scheme had been adopted by 199 of the 212 municipalities during Herrera's tenure, providing them with advance federal resources in exchange for future commitments.

“

We recovered the money. Today all municipalities are settled; they don't have to pay a single peso. The securitization does not end in 2036 or 2030: it ends today.