Mexico kicks off debt management operation for external, local debt due next year

MEXICO CITY (Reuters) - Mexico's finance ministry launched debt management operations in New York on Wednesday that will reduce all the country's external debt payments for 2025, as well as local peso-denominated debt for 2025, according to a senior official.

"We will monitor the markets to keep doing financial operations that benefit liquidity," Deputy Finance Minister Gabriel Yorio wrote on X, without giving more details on the refinancing process.

In a separate statement, the finance ministry said it was launching early maturity proceedings for a $894 million bond due in April of next year.

Mexico's central bank earlier no Wednesday released a biannual financial stability report which said that Latin America's No. 2 economy remained solid, with credit stress tests showing a resilient banking system.

But in the fallout of market volatility following the June 2 elections that saw a landslide ruling party win, the finance ministry has sought to reassure investors, saying the incoming government will be financially disciplined and work to reduce public debt.

The ministry has said it will seek to cut annual debt to levels compatible to a debt / GDP ratio of around 3%.

(Reporting by Anthony Esposito and Sarah Morland; Editing by Kylie Madry and David Alire Garcia)