A total of 199 Veracruz municipalities managed to pay in advance a historical liability for the securitization of federal budget items, with support from the State Government.
Extinction of stock market debt
With a payment of just over 1,500 million pesos, the extinction of this obligation, contracted during the government of PRI member Fidel Herrera Beltrán, was finalized. Originally it was for 1,208 million pesos, but its financial structure—with debt indexed to UDIS, high interest rates and retention of participations—meant that the municipalities had already paid 2,573 million pesos. If it continued in force, they would have had to cover another 2,266 million until 2036.
Governor Rocío Nahle García announced the total cancellation with resources found in different trusts, so the municipalities did not disburse anything. One thousand 085 million pesos were recovered from trust accounts, and the State contributed 500 million.
“We recovered the money. Today all the municipalities are liquidated; they do not have to pay a single peso. The securitization does not end in 2036 or 2030: it ends today,” said Nahle.
During the review of the trust, the government identified three accounts—shares, support and reserve fund—that concentrated non-transparent resources for 1,085 million pesos. After recovering them, the liquidation was complemented with the state contribution to extinguish the obligation.
It was under the mandate of Fidel Herrera when 199 of the 212 municipalities took advantage of this scheme to securitize their federal participations, receiving resources in advance and committing the participations of various administrations.
