Posted on 05/01/2016 4:32:47 PM PDT by Lorianne
Taxpayers in Mexico Brace for a New Round of Plunder __ How the mighty are fallen. Pemex, Mexico’s state-owned oil giant, once a goliath on the global energy scene, is now dependent on state aid to meet its day-to-day needs. Mexico’s Finance Ministry announced a series of measures aimed at loosening Pemex’s financial strains, giving the state-owned giant a decidedly short-term $4.2 billion liquidity boost.
That includes a capital injection of $1.5 billion, as well as a credit facility for a further €2.7 billion to pay down pension costs this year. The company will also receive tax breaks that will allow it to deduct more of its exploration and production costs.
But it’s a mere drop in the barrel compared to the $30.3 billion in losses the company racked up last year, its $90.5 billion in pension liabilities, and its debt which is expected to surpass $100 billion later this year.
The Markets were thrilled by the announcement.
“This is good, because it is comprehensive and it deals with the main issues,” said Alexis Milo, an economist at Deutsche Bank in Mexico City. “The reaction of markets will be positive because this is the beginning of the structural changes that markets were expecting.” As soon as the news broke, Pemex’s CEO and Mexico’s Finance Minister were on a plane to Wall Street to try and drum up investor support for the ailing oil company. Now they know that Mexico’s taxpayers have Pemex’s back — at least for now — investors are likely to view the company more favorably.
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Is Mexico starting to run out of other people’s money? Socialism is fun the first decades and then it turns to crap and can only be removed with violence.
Better call Brazil for the bailout money...
Thatcher nailed it.
And leftists in this country want to nationalize the oil industry.
Guess Venezela won’t be sending any money since they only have electricity four hours a day now. Meanwhile, clueless governments,trying Socialism and failing all over the world,hope we will somehow bail them out.
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