Ensenada’s municipal government has completed the refinancing of a 665 million peso (approximately $33.2 million USD) debt originally contracted with Banco BANSI in 2015. Mayor Claudia Agatón Muñiz announced the deal, which moves the remaining balance to Banobras, the federal public works bank, and is expected to save the city 17 million pesos ($850,000 USD).
The original 20-year credit was signed under former Mayor Gilberto Hirata Chico to consolidate existing municipal debt at the time. According to the current administration, the debt continued to grow rather than shrink under the BANSI terms. Of the original 665 million pesos, roughly 410 million pesos ($20.5 million USD) still remained outstanding.
Years of Attempts to Restructure
Efforts to renegotiate the BANSI loan date back to at least March 2020, when the city council authorized the municipal treasurer to explore refinancing options. At that time, the council also directed the city’s legal department to review the original BANSI contract, including some 27 transfers from the BANSI account to the city’s general fund totaling more than 425 million pesos.
The current administration said the negotiation process lasted several months and involved multiple financial institutions. Banobras ultimately offered the best terms for the city.
What It Means for Ensenada’s Budget
The 17 million peso savings will free up budget capacity for Ensenada, which has long struggled with fiscal constraints. Municipal debt service payments compete directly with spending on roads, water infrastructure, public safety, and waste collection. Lower debt costs could allow the city to redirect funds toward these services.
The original 2015 deal was itself a response to financial strain. Semanario ZETA reported at the time that Ensenada signed the BANSI contract to cover accumulated debts from previous administrations in a single restructuring. The fact that the city still owed 410 million pesos on a loan taken out a decade ago to solve a deficit shows how persistent the fiscal challenge has been.
Ensenada is Baja California’s third largest city by population and a major hub for tourism, wine production, and seafood. Property owners and business operators in the area rely on the municipality for permits, road maintenance, and essential services tied to the city’s annual budget.
This story was first reported by Ensenada.Net and El Vigía.