By Lara Holmes

The chairman of the board of the Senate, Jose Gonzalez Morfin said it is urgent to curb and regulate the debt of the states. Since according to the Ministry of Finance and Public Credit (SCHP for its name in Spanish), at the end of 2011 entities owed 390.777 million pesos, an annual growth rate of 24.1%.

The country, he said, is in an economic situation that allows it to be a magnet for investment, as our financial reserves are strong, maintaining a growth above European countries and Brazil, the peso is stable and the Inflation is going down.

These circumstances put our country with a more optimistic scenario than many other nations, however, these conditions should not be a cushion of comfort, nor are they a reason for overconfidence, he  noted in an interview.

On the contrary, we are obliged to take action to prevent any eventuality and the legislature will promote measures to increase this, he said.

Morfin Gonzalez reported that last Thursday in the Senate he met with the governor of the Bank of Mexico, Agustin Carstens, who confirmed precisely this situation of stability which is echoed internationally.

Around the world the position of Mexico economically is recognized and so we seek our country to have greater weight in international bodies like the International Monetary Fund itself, he said.

He is also coordinator of the National Action Party (PAN) in the Senate, and he recalled that as part of the legislative agenda on economic policy, they highlight a proposal to match various parliamentary groups: a reform to regulate the acquisition of debt by state entities.

It is truly alarming the discovery of what is around the debt owed by the government of Coahuila: acquisition of debt with false documents, officers arrested and detained refugees among others, he said.

For the legislative branch it is a warning not to be missed, it is a warning that we must take action to prevent a possible crisis over the failure in payment of the entities.

Gonzalez Morfin cited figures released this week by the Ministry of Finance where he warned of an increased use of federal contributions to pay state debt.

According to the SCHP, he said at the close of 2011 the state debt was 390.777 million pesos, equivalent to an annual growth rate of 24.1%.

That means, he also explained, that the state debt at the end of 2010 equals 72% of federal contributions they received.

He said in conjunction with other legislative groups they could advance a reform proposal so that the states that would not go into debt for such long periods.

In addition, not to use those resources for current spending for it would not be productive resources and also not to use the money from the debt acquired in works that have a shorter life span the period agreed to pay the debt, he added.