Mexico’s Gross External Debt by Currency
Mexico‘s gross external debt totaled 117,834.8 million dollars as of September 30, 2023, of which 66.7% was denominated in U.S. dollars.
By currency, it was followed by the euro in this indicator (16.9%), the Japanese yen (4.3%), the Swiss franc (1.7%) and the pound sterling (1.5 percent).
According to preliminary figures from the Mexican government, as of September 30, 2023, the public sector’s outstanding gross external debt amounted to US$215.3 billion, a decrease of approximately US$2.5 billion from the US$217.8 billion outstanding as of December 31, 2022.
Of this amount, $207.5 billion was long-term debt and $7.8 billion was short-term debt.
Net external borrowing decreased by US$3.9 billion during the first nine months of 2023.
External debt
Going forward, external credit will continue as a complementary source of financing when market conditions are favorable, in order to maintain a lower percentage of external debt in the total composition of the federal government’s portfolio.
The ratio of external debt to total debt presented a downward trend from 21.9 percent of total federal government debt in 2019, to 19.4 percent at the close of 2022, and by the close of 2023, this percentage is expected to be 16.0 percent.
According to the Ministry of Finance, the external debt operations to be carried out in 2024 will be carried out with the objectives of maintaining presence and access to international markets, diversifying the sources of financing, expanding the investor base and, if applicable, building ODS Bond curves.
Bond issuance
Likewise, conditions in international financial markets will be monitored in order to implement liability management operations to improve the cost profile, reduce short-term amortizations and smooth the maturity profile.
In addition to the issuance of sustainable bonds in 2024, credit from International Financial Institutions (OFIs), Bilateral Organizations and Export Credit Agencies will be used in a complementary manner to finance infrastructure projects that contribute to the economic and social development of the country, in line with the priorities expressed in the National Development Plan 2019-2024.
