Mexico has 18 billion pesos. visit Natural disasters like the one that is called Hurricane Otiswhich struck this Wednesday category 5 on the coast of Acapulco, Guerrero.
During his speech in the Senate, Finance and Public Credit Undersecretary Gabriel Yorio assured that the Natural Disaster Fund (Fonden) currently has a budget line of P10 billion.
Fonden is not extinct
He pointed out that this Fonden is not extinct but rather centralized within the Mexican government resources that had previously been managed by the National Bank of Public Works and Services (Banobras) and municipalities.
“What has been withdrawn, especially from the administrator of Fonden, who was Banobras, is the public financial management system, that is, it is no longer Banobras and the municipalities that establish the system of accounts,” Yorio explained.
Photo: Cuartoscuro
He explained that in these types of events, such as the aftermath of Hurricane Otis, the Mexican government centralizes resources and identifies recovery projects, then transfers the resources to implementers to activate contingency and recovery plans.
Disaster reserves were not affected
He also noted that disaster reserves were not affected even after the liquidation of 109 trusts, including Fonden, as part of reforms approved by the Mexican Congress in December 2020.
Yorio also assured that there is 5 billion pesos for catastrophe insurance which are concluded every year, and added that they have $485 million from the disastrous connection that Mexico has with the Pacific Alliance, which includes Chile, Colombia and Peru.
“So the cash reserve and parametric catastrophe insurance remained intact, and we extended them every budget cycle.”
Photo: Senate
582 billion pesos, damage due to natural disasters.
On this day, the Association of Banks of Mexico (ABM) reported at a press conference that over the past 22 years, losses from natural disasters reached 582 billion pesos, 1.3 times the microloan portfolio. .
He also initiated various actions to address the fallout from Otis, such as opening accounts to receive donations, transferring basic supplies, a truce for debtors, and providing cash and terminals so victims could use the money in their accounts. (EFE)
You may be interested in > Acapulco: First aerial photos of damage caused by Otis
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
