Yucatán has a public debt of $10,842 million 734 thousand pesos, although the Ministry of Administration and Finance (SAF) officially states that as of June 30, 2024, it is $7,472.802 million. However, in its own report published today in the Official Gazette of the Yucatecan government, SAF informs that the figure of $7,472 million does not include the credit of $306.932 million paid directly by the Federation to Banobras or the loan of $3,063 million contracted for the expansion of the high-altitude port.
Yucatán’s population, according to the National Institute of Statistics and Geography (INEGI), is 2,320,898 inhabitants. Therefore, based on the official figure of $7,472 million, each Yucatecan would owe approximately $3,219.78 pesos. Six months ago, as of December 31, 2023, each one owed $3,370.24 pesos.
The breakdown of how much Yucatán owes
In its “Long-term Public Debt Report”, the SAF published today Monday July 15, 2024, the following breakdown:
1) Yucatán Seguro
The state’s largest debt is $2,504.237 million with Banamex, as a result of the simple credit contract of $2,600 million on September 27, 2019, to be paid in 20 years.
This debt was authorized through Decree 98/2019, published on July 31, 2019, which ordered that the money be deposited in a trust for the “Yucatán Seguro” project and that the loan be repaid with the General Participation Fund.
On July 1, 2019, before the decree, Governor Mauricio Vila Dosal presented Yucatán Seguro, which includes the installation of 3,527 new surveillance cameras and 1,000 neighborhood cameras, 119 roadside arches in state and municipal entrances and exits, four marine patrol boats, six drones, an “intelligent traffic light”, etc.
2) Three refinanced debts
The second largest debt is $2,480 million 249 thousand 520 pesos with Banobras. These are three credit refinancings of loans contracted by previous state governments.
As of June 30, SAF reported that Banobras owed $1,326.347 million, $1,153.134 million, and $768,520 of these refinancings.
According to the SAF, these three refinancings were authorized in Decree 156/2019, published on December 31, 2019.
The mentioned decree is the Yucatán State Budget Law for 2020.
In this document, the state legislature authorized the SAF to refinance six loans contracted with Banobras in 2011, 2013, 2016, and 2017, which had a balance of $4,422 million 251,396 pesos as of December 31, 2019.
After four years and five months of payment, the debt from 2019 has already decreased by approximately $1,942 million.
The following governors contracted six loans:
For years, the former PRI governors Ivonne Ortega Pacheco (2007-2012) and Rolando Zapata Bello (2012-2018) contracted these six debts.
In 2024, Ivonne Ortega is a federal deputy for the Citizens’ Movement (MC), and Rolando Zapata will be a senator of Mexico starting September 1st next year.
3. BBVA México is the creditor of Yucatán’s third largest public debt: $1,720.564,000, which is the balance of the “simple credit up to $1,735 million” authorized in Decree 526/2022 published in the Official Gazette of the Government of Yucatan on June 30th, 2022.
According to Decree 526/2022, the state Congress authorized the then-governor Mauricio Vila Dosal to contract this credit for the “Le-Tram and Complementary Works” project.
This project, as stated in the decree, consists of “the construction, reconstruction, expansion, maintenance or conservation of physical infrastructure and urban development, as well as the acquisition of goods for the equipment of generated or acquired works”.
It is paid with federal funds
Additionally, the decree set a maximum repayment period of 20 years using “the General Participation Fund (part of the 28th Item)” and “up to 25% of the federal contributions that correspond to the state from the Federal Contributions Fund for Strengthening State Entities (FAFEF)”.
In about two years, the debt has already decreased by only $15.5 million.
According to the same state government, Ie Tram will consist of 32 passenger buses connecting the municipalities of Mérida, Umán, and Kanasín, as well as the construction of streets for these vehicles.
4. Public Security
The SAF reported that with Banobras they have a debt of $306.932,000 to be paid using the guarantee of the Federal Infrastructure and Security Support Fund, federal government, authorized in Decree 37/2013 published on January 25th, 2013.
Regarding this decree, it authorized then-governor Rolando Zapata Bello to contract a loan for “general infrastructure, public security infrastructure, or infrastructure and equipment” projects.
In this decree, no specific project was specified, but it is required to be paid in the maximum of 20 years using the mentioned Fund.
5. The Progreso Port
Additionally, SAF announced today that they have signed contracts with BBVA México, Banamex, and Banco Mercantil del Norte for the expansion project of the Progreso Port by a amount of “up to $3,063 million”, with the authorization of Decree 638/2023 published on June 15th, 2023.
These resources have not been disbursed and are in a period of disposition, according to SAF, which did not include this credit in the breakdown of Yucatán’s public debt of $7,472 million 802 thousand pesos.
