Mexico Weighs Options to Absorb $40 Billion of Pemex Debt
- Finance Ministry studying options for next presidential term
- Sovereign bonds slip, Pemex debt jumps on support plan
Mexico is studying options to absorb as much as $40 billion in Pemex debt, the equivalent of what will come due in the next presidential term, one of its top finance officials told investors in New York.
The government is considering options that could include repurchasing bonds issued by the heavily indebted state oil firm Petroleos Mexicanos or issuing sovereign debt to fund buyouts, Deputy Finance Minister Gabriel Yorio told investors, according to people who participated in the meeting. The plan would be gradual, to be exercised over the course of the next six years, and any significant operations would require legislative changes, he said at the meeting.