PW
Español

 

PW
Guyana
Surinam


PW
Trinidad

& Tobago
Caribbean

 

Prices
Graphics

 




Very usefull links



PW
Bookstore





Blogspots

The Global Barrel

Tiempo Culural

Gustavo Coronel

Iran Watch.org

Le Blog des
Energies Nouvelles

News Links

AP

AFP

Aljazeera

Dow Jones

Reuters

Bloomberg

Views and News
from
Norway

 

PW
Bookstore

 

 

 

Disclosing plan to pay Pemex debt caused cost to rise -AMLO

Milenio

The president disclose at a press conference that he planned to use at least part of $12 billion of
funds receive from the International Monetary Fund to reduce Pemex’s $115 billion debt burden.

- President called those who traded on the news ‘vulture funds’
- Banxico reserves may go to sovereign debt payments, not Pemex

By Amy Stillman and Maya Averbuch / Bloomberg

MEXICO CITY
Petroleumworld 10 07 2021

Mexico President Andres Manuel Lopez Obrador said Wednesday that disclosing his plan to prepay debt of Petroleos Mexicanos caused the cost of that transaction to rise, suggesting the operation may be off the table for now.

Bond prices leaped for Pemex, as the state-owned oil company is known, after the president on Sept. 6 began talking up his debt plans at his morning press briefing, making the operation itself more expensive.

The president said at the time that he planned to use at least part of $12 billion in funds recently transferred to the central bank’s reserves from the International Monetary Fund to reduce Pemex’s $115 billion debt burden. The company’s bond prices spiked again the following week after Mexico said it purchased $7 billion of international reserves from the central bank.

“We spoke here about using resources that were being given to Mexico, that we were thinking about the possibility of buying bonds to pay debt, especially Pemex debt,” AMLO, as the president is known, said at his Wednesdsay morning briefing. “Do you know what happened? The interest on Pemex bonds increased because of what are called vulture funds, which are speculative.”

AMLO’s press office didn’t immediately reply to a request for comment on the status of the debt repayment plan.

The $7 billion may not go to Pemex and could be used to make upcoming sovereign debt payments, two people familiar with the matter told Bloomberg News last month. A third person said that while the funds may be used to buy back Pemex debt in the end, there are other possibilities currently under analysis, without elaborating.


_____________

By Amy Stillman and Maya Averbuch from Bloombergb News

bloomberg.com /10 06 2021

TOP

Contact: editor@petroleumworld.com,


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

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, 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.