MEXICO CITY - Mexico has raised a non-binding limit for gross debt to 70% of gross domestic product , almost 20 percentage points above last year’s level, for the remaining four years of the term of its fiscally conservative president.
Ratings agencies have cited the impact of the coronavirus pandemic, interest rate changes and a depreciation of the peso as the main risk factors for further downgrades. Mexico had a gross debt to GDP ratio of 60.2% updated to June, about 10 percentage points above the level at the close of 2019, official statistics show. In a document issued after the president’s state of union address last week, the government revealed the new upper limit of 70%.The Mexican finance ministry did not respond to requests for comment.