**New Debt: Authorities to Request Another Loan for Hurricanes in Baja California Sur**
In the absence of the National Disaster Fund (Fonden), which was abolished in 2021 by the Secretariat of Finance and Public Credit (SHyCP), the authorities of Baja California Sur have been compelled to find new ways to handle financial emergencies caused by hurricanes.
In this context, Bertha Montaño Cota, head of the Secretariat of Finance and Administration of Baja California Sur, announced plans to seek a new short-term loan to prepare for potential natural disasters. Given that Baja California Sur is the region most at risk of cyclone impacts, according to the National Water Commission (Conagua), the state government created a self-funded emergency reserve that reached 400 million pesos in 2023, though for 2024 it has dropped to only 70 million pesos.
This marks a significant reduction compared to the previous year as rehabilitation costs for cities and communities affected by cyclones can run as high as 150 million pesos, depending on the cyclone’s intensity. Montaño Cota pointed out that past events have required around 150 million pesos each if they were no more than category three hurricanes.
While the exact amount for the new loan has not yet been determined, Montaño Cota suggested it would likely be between 500 and 600 million pesos to be repaid within a year. Not all the funds will be used to fill the emergency reserve; part will cover other expenses. The loan might be put out for tender in September this year.
As reported earlier, according to the State Analytical Report of Debt and Other Liabilities, the public debt increased by over 1.2 billion pesos within the first sixteen months of Governor Víctor Castro Cosío’s administration by December 2022. Another 150 million pesos loan was requested by the Secretariat of Finance by the end of 2023.
Governor Castro defended these loans as short-term solutions that will not burden the next state administration. He emphasized the necessity of such financial measures due to the financial gap left by his predecessor, Carlos Mendoza Davis.
**Secondary Article: Baja California Sur’s Financial Preparations for Hurricane Season**
In light of the need for increased funds to mitigate hurricane damages, Baja California Sur’s authorities are taking significant steps in preparation for the next hurricane season. According to the latest reports, more than 3,000 military personnel are ready for deployment in response to cyclonic activities.
Additionally, local residents have expressed concerns about the reduced emergency funds and potential impact on the state’s ability to recover from natural disasters efficiently. Community leaders are calling for more robust and long-term financial strategies to ensure safer and quicker recovery efforts.
Meanwhile, environmental experts have highlighted the importance of sustainable planning and climate resilience to better prepare the region for future storms. The state government is also engaging with private companies to explore innovative solutions in disaster response and recovery.
For more information on the steps being taken to prepare for the upcoming hurricane season and financial resilience efforts, stay tuned to TJGringo.com.