MEXICO CITY Dec 19 Mexico will boost the amount
of debt it will issue in the first quarter of 2014, the finance
ministry said on Thursday, as the government seeks to spend more
to strengthen a nascent economic recovery in Latin America's No.
The government will sell 1 billion pesos ($77.15 million)
more each week in six-month peso-denominated bills, for a total
of 11.5 billion pesos of the paper weekly, the ministry said.
Offers of three-month and one-year debt will also increase.
Mexico's offering of three-year and five-year bonds will
increase by 1 billion pesos each to 11 billion and 10.5 billion
pesos, respectively, every four weeks.
Offers of 10-year bonds every six weeks will increase by 500
million pesos to 8.5 billion pesos, while offers of 20- and
30-year bonds will remain at 4 billion and 3.5 billion pesos,
respectively, every six weeks.
The government plans to run a budget deficit of 1.5 percent
of gross domestic product (GDP) next year, excluding debt from
state-run energy firms, up from a 0.4 percent deficit this year,
as it boosts spending in a bid to shore up a tepid recovery.
Mexican growth contracted in the second quarter for the
first time in four years but rebounded in the third quarter.
The finance ministry expects growth of just 1.3 percent this
year, well below the 3.8 percent recorded in 2012.
On Thursday, the Finance Ministry also said it was planning
two syndicated auctions of fixed rate five-year and 20-year
Starting in 2014, syndicated auctions can occur in any
quarter and the amount auctioned may be above the scheduled
amount, the ministry added.
The ministry said it was also considering issuing euro- and
yen-denominated debt next year, something it has done this year.
President Enrique Peña Nieto has been pushing through
Congress a raft of reforms aimed at jump-starting growth in
Mexico, whose economy has long lagged those of emerging market
The cornerstone of the reform drive, a shake-up of the
energy sector, is due to be signed into law any day now.
The central bank has said it expects growth to reach 3 to 4
percent next year, helped by the reforms.