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Wednesday, November 9, 2005 · Last updated 10:32 a.m. PT

Mexican gov't pays off $1.4B in debt

THE ASSOCIATED PRESS

MEXICO CITY -- Mexico has paid off $1.41 billion in foreign debt to ensure its financial stability through next year's presidential elections, Mexico's Treasury Department said Wednesday.

The country has paid off a portion of 10 bonds due between 2007 and 2033 using funding purchased from the central bank, the department said in a news release.

President Vicente Fox has promised to cover financing needs through 2007 to protect the economy from the financial crises associated with earlier presidential transitions.

The announcement came as a surprise, but "is very positive," said Morgan Stanley analyst Gordian Kemen.

The government still has $430 million more than what is needed to pay $2.9 billion in 2006 debt payments.