México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

Mexico looking at paying Pemex debt from stabilization fund - official

 


 

By Reuters

ACAPULCO, Mexico
Petroleumworld 03 25 2019

Mexico's deputy finance minister said on Thursday the government was considering using part of a $15.4 billion public income stabilization fund to pay some debt obligations for heavily leveraged state oil company Pemex.

The finance ministry is working on a new design for the fund to make it counter cyclical, deputy minister Arturo Herrera said in an interview with TV network ADN40, during a banking conference in Acapulco.

Grappling with Pemex's financial health has been a key challenge for President Andres Manuel Lopez Obrador, who took office in December. The entity holds roughly $106 billion in financial debt, the highest amount of any state oil firm in Latin America.

“We'd like to design it as a counter cyclical fund, like the copper funds in Chile are designed, where the resources are used not when the government wants to, but when the economy makes them necessary... In times of abundance, you put money into these resources,” he said.

“As a second part of the fund, we'd like to use it to pay some of the debt obligations that Pemex has,” he said.

Pemex has some $16 billion of debt payments due by the end of next year. Herrera said Mexico's fund has a generous margin that could be put to helping Pemex.

Herrera said he expected to make an announcement in the next two or three weeks on the plan to use the public income stabilization fund, which holds about 290 billion pesos ($15.4 billion).

Rating agency Fitch downgraded Pemex's credit rating in late January to one level above junk status, citing the company's high leverage and tax burden.

In February, Mexico said it would inject $3.9 billion into Pemex, promising to strengthen its finances and prevent a further credit downgrade. Investors largely saw the plan as only a short-term fix.

Chile has two sovereign wealth funds. Unusual for Latin American countries, they were created to help finance pensions and as a “rainy day fund” for times of economic stress.

($1 = 18.8592 Mexican pesos)


________________________


We invite you to join us as a sponsor.

Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

________________________

 

Reporting by Dave Graham and Stefanie Eschenbacher in Acapulco; and Adriana Barrera and Frank Jack Daniel in Mexico City; Writing by Daina Beth Solomon from Reuters.

Reuters.com 03 22 2019

Twitter: @petroleumworld1


 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher: Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2019, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reserved

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.