Financial Restructuring: Veracruz’s New Strategy

Veracruz now has a new fiscal discipline policy, which has helped reduce its historical debt by 42 percent—from US$6 million to US$4 million.

This strategy was recognized by President Claudia Sheinbaum, who has said that the model implemented in the state serves as an example for the country’s various regions. Led by Governor Rocío Nahle García, this model aims to strengthen public finances through mechanisms promoted by the federal government.

The president emphasized that this commitment by the state governor has yielded results that take advantage of the state’s regulatory and tax compliance frameworks, making them available.

The president explains how the Tax Administration Service, better known as SAT, has mechanisms in place to help states and municipalities settle their debts and recover a portion of their funds after fulfilling their tax obligations—a strategy that Veracruz has leveraged to strengthen its public finances.

This financial policy has led to a significant 42% reduction in its historical liabilities. Furthermore, a major debt settlement among the main liabilities stands out: amounting to US$1,609 million. There was also a reduction in ISSTE’s debt, which totaled US$590 million—equivalent to a decrease of nearly 50%—as well as the repayment of five loans totaling US$257 million, reducing the number of active loans from 21 to 16.

This approach resulted in an even higher credit rating for the state without halting investments in infrastructure, health, education, and social programs. It ensures sound management of public resources, which aims to have a positive impact on Veracruz’s development.

According to press releases: “Governor Rocío Nahle García has maintained that fiscal discipline is an essential condition for promoting development in Veracruz, based on the principle that every peso in the public treasury belongs to the people and must be used for the well-being of the people of Veracruz.”