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The united commissions of opinion of the Local Congress, approved three initiatives of the governor Alfredo del Mazo to restructure the public debt, to issue treasury bonds - that implies new debt-, as well as other one relative to a new law of social security, which modifies the scheme of pension of the bureaucrats who live in the State of Mexico, by individualizing their bills in AFORE (Administrators of Funds for Retirement) and extending by three years the retirement age.
After a quick session that was preceded by a meeting work by civil servants of the Secretariat of Finance, the three initiatives were approved by the majority votes of the PRI (Partido Acción Nacional) and its allies PANALl (Partido Nueva Alianza), PVEM (Partido Verde Ecologista de México), PES (Partido Encuentro Social) and Movimiento Ciudadano (MC).
The three initiatives were opposed by legislators of Morena, Partido Acción Nacional (PAN) and Partido de la Revolución Democrática (PRD), who anticipated that in the session of this Wednesday, they will ratify their vote in opposition to the three initiatives, and in this case, the initiative to restructure the public debt might not succeed, as it requires a qualified two-thirds majority.
Raymundo Guzmán Corroviñas, who is not only a representative of the PAN, but is an expert and a consultant in financial matters, claimed that the PAN will not give his approval to either the bond issue of national debt or the restructuring, because the latter means increasing the current debt (of over 43 billion pesos) to more than 900 million pesos; while the second one, the limits for issuing treasury bonds were not placed and it is not clear how much more Alfredo del Mazo intends to go into debt through this mechanism.
In the case of the new Law of National Health Service, they indicated that despite the new classification, the fund problem of the ISSEMYM is not solved, which is at the edge of a " financial collapse ", besides it extends from 62 to 63 years, the age in order that the public servants could retire.
At the time of reading both initiatives, the representative Sue Ellen Bernal Bolnik emphasized that the entity has levels of low debts in proportion with the size of its economy (2.1 % of the state GDP), and that given the strength of the public finance, the profile of the national debt and the stability of the market is considered that it exists a window of opportunity to look for better conditions of financing.
She assured that one does not try to contract new debt, but to improve the conditions of 28 financings that already exist, besides that she estimates an annual saving of almost 900 million pesos and near five billion in the whole administration.
The commissions also approved the initiative about the Certificates of the Treasury of the State of Mexico, which raises as options to attend the needs of immediate liquidity of the state government.
Translator: Fabián Peñaloza