Mexico is looking to allocate the $7bn of international reserves from the $12bn that the IMF transferred to the country’s central bank to other purposes over paying down debt of Petroleos Mexicanos (Pemex), the country’s most costly debt, as per sources. Originally, President AMLO declared that the $12bn of IMF resources could be used to cover Pemex’s debt. The government might now be looking into making upcoming sovereign debt payments with the dollars it purchased, two of the sources said, as the move may backtrack on the original intent. The $7bn were purchased with the government’s own resources and no debt sales were needed to implement the deal.

Mexico USD bonds were trading stable with its 4.5% 2026s trading at 114.439, yielding 2.4%

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