• On April 11, 2016, the Central Bank of México transferred to the Federal Government 239,093.8 million pesos (mp) from its operation surplus achieved during the 2015 fiscal year.
• In accordance with the Budget and Fiscal Responsibility Federal Law (LFPRH), 70% of the operating surplus will be used by the Federal Government to reduce its debt as follows:
1) A reduction in local debt issuance of at least 64,000 mp.
2) A repurchase of government securities for up to 103,000 mp. Details will be disclosed by the Ministry of Finance before each transaction.
• These actions will improve the amortization profile of the Federal Government and strengthen public finances.
• In this context, the Ministry of Finance announces the amendment to the government securities auction calendar for the second quarter of 2016. These modifications will take effect starting on May 2016.
Modifications in the Government Securities Auction Calendar for the Second Quarter 2016:
• The amount to be issued for 3-year Fixed-Rate Bonds will be reduced by 1,500 million pesos (mp) in each auction.
• The amount to be issued for 5 and 10-year Fixed-Rate Bonds will be reduced by 1,000 mp in each auction.
• The amount to be issued for 20 and 30-year Fixed-Rate Bonds will be reduced by 500 mp in each auction.
• The amounts to be issued for 3, 10 and 30-year Udibonos will be reduced by 50 million udis in each auction.
• The amounts to be issued for 5-year Bondes D will be reduced by 1,500 mp in each auction.
As a result, the Ministry of Finance will reduce its debt issuance in the domestic market by at least 17,400 mp during the second quarter. The auction calendars for the third and fourth quarter will be announced at the end of June and September, respectively.
The auctions of Cetes, Fixed-Rate Bonds, Udibonos and Bondes D during the rest of the second quarter of 2016 will have the following characteristics:
(view PDF file)
The LFPRH states that the Ministry of Finance and Public Credit must disclose in the fourth quarter report of the current fiscal year the specific use of the operational surplus from the Central Bank, as well as the impact on the Borrowing Requirements and Historical Balance of the Public Sector (BRHBPS).
Additionally, in order provide full transparency regarding the use of these resources, the Ministry of Finance and Public Credit will disclose, in each of the quarterly reports presented to Congress, the progress regarding the use of the resources and its impact on public finances.
The Administration of President Enrique Peña Nieto has stressed its commitment to manage public debt responsibly and maintain healthy public finances, in order to facilitate and promote growth in favor of mexican families.