LatinNews Daily - 13 June 2024

*Mexico’s government has prepaid an US$894m bond due in 2025, as part of an effort to refinance nearly US$4bn in debts which fall due in the first year of President-elect Claudia Sheinbaum’s administration. The finance ministry (SHCP) noted that this is the third 2025 bond that has been paid early, and said that the prepayments will “reduce the external debt to ease payment pressures on the next administration”. Mexico’s deputy finance minister, Gabriel Yorio, also announced yesterday that the government is planning to refinance its peso-denominated debt which falls due next year. These moves by President Andrés Manuel López Obrador’s outgoing government seem aimed at calming markets, which were spooked by Sheinbaum’s landslide victory in the 2 June elections, and, in particular, by the large majority that the ruling Movimiento Regeneración Nacional (Morena) obtained in congress, which puts Sheinbaum within touching distance of a supermajority that would enable her to reform the constitution without the support of the opposition.