Mexico could receive up to 60 million dollars for a catastrophic bond after Hurricane Otis – El Sol de México

Mexico could receive up to 60 billion dollars from the catastrophic bonusafter the damage caused by Hurricane Otis in AcapulcoGuerrero, two weeks ago, said Gabriel Yorio González, undersecretary of Finance and Public Credit.

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“We estimate that there would be 60 million dollars that would cover us for this event, but we have to wait for the ruling,” said the official after participating in a forum organized by the Mexican Council of Sustainable Finance (CMFS).

Yorio González explained that currently the federal government is waiting for a ruling that will define the final amount that will be received after said catastrophein which the magnitude of damage, category of hurricanein other aspects.

“Although we already know that it was category five, we have to wait for a statement from a third party that says that this was indeed the magnitude; With that, we can now access the resources of the catastrophic bonus,” he pointed out.

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According to data from the Ministry of Finance and Public Credit (SHCP), the catastrophic bonus is for an insured sum of 485 million dollars against losses arising from earthquakes and tropical cycloneswhich will be active until March 2024.

The official highlighted that the last time Mexico accessed the resources of a bond catastrophic About four months passed between the ruling on the damages and the dispersion of the money.

If the same period is met, he highlighted, the resources could be received until the next fiscal year.

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“We are not waiting for them to give us the resources for the catastrophic bonusthat would only offset the cash flow that we will use to finance the recovery of the state of Guerrero, after Hurricane Otis,” concluded Yorio González.

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