Mexico's AMLO says no layoffs planned at Pemex
Victoria Valtierra / cuartoscuro.com
Mexican president, Andres Lopez Obrador (AMLO) said no layoffs planned at indebted Pemex
Reporting by Lizbeth Diaz /
Petroleumworld 05 27 2019
President Andres Manuel Lopez Obrador said Sunday that there will be no layoffs of workers from state oil company Pemex, whose soaring debt and obligations have worried investors and sparked fears of a ratings downgrade.
In recent weeks, the president announced measures designed to shore up the finances of the world's most indebted oil company by extending its lines of credit with banks and reducing its tax burden.
“There will be no layoffs, (employers') pensions are completely safeguarded and I say to them: we are going to improve the medical services that are bad,” Lopez Obrador said.
Next year will see a greater government budget, making it possible to increase gasoline production and other hydrocarbons, Lopez Obrador added.
The veteran leftist took office in December promising to revive Pemex, whose financial debt surged 75 percent under the previous administration and now stands at over $106 billion.
The company's total obligations, including pensions, exceed its assets by more than $70 billion.
Lopez Obrador's plans include building a new $8 billion refinery, refurbishing existing refineries and reversing a steady decline in crude production.
But credit agencies have warned of downgrading Pemex bonds to “junk” status, which would likely sharply increase borrowing costs as many investors dump its bonds.
Critics have also questioned the government's support for Pemex even as it executes on an austerity plan. Spending has been slashed for several major government departments, including the health service.
On Tuesday, German Martinez, head of Mexico's social security institute (IMSS), resigned, saying that budget cuts and lay-offs ordered by Lopez Obrador's finance minister were harming health services for the poor.
Reporting by Lizbeth Diaz; writing by Delphine Schrank; editing by Dave Graham and Susan Thomas from
reuters.com / 05 26 2019
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.
Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to firstname.lastname@example.org
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: email@example.com
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels