States initiate purely financial bonds
The 31 states of Mexico are bonding again. But unlike independence in 1821 this time it is purely financial.
|Tijuana: growing fast but on a meagre budget|
Legislation passed in April allows Mexican states and municipalities to issue debt for the first time. Bonds are the order of the day and many states are preparing new issues for later this year.
In a country propelled forward by rapid economic growth but burdened by a mounting population the stretched finances of states and municipalities have been unable to keep up with the country's infrastructure needs.
Tijuana, one of Mexico's fastest-growing cities, is expanding by 3.2 hectares a day and survives on a meagre budget of $150 million a year. By comparison, San Diego, its sister city just over the border in California, has an annual municipal budget of $2.3 billion. Mexico City faces an annual budget shortfall of some $500 million and improvements in public services in the central state of Morelos have been paralyzed by its $40 million debt.