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Mexicans Still Wary of Subnational Debt

Sep 27, 2012

Mexican state and municipal debt levels continue to be on the rise, and while still appearing to be manageable, there are calls for closer scrutiny of sub-sovereign entities seeking to borrow. “I don’t think debt is good or bad per se when used towards works for development. There are some states that have taken advantage and have abused the debt, but overall one needs...

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At a fundamental level, the issue is how to generate healthy returns in the medium to long term. Policy holders can see their fund go down over the course of a week or a month, but what we really should be looking at is returns over 20 or 30 years.

Daniel Schydlowsky, Peru’s banking, insurance and private pension fund regulator


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