Mexico’s President AMLO announced that the cost of using part of $12bn in IMF funds, recently transferred to the Mexican central bank’s reserves to reduce Pemex’s $115bn debt, has increased, suggesting that the operation might not materialize. The President explained that this is a result of having disclosed his plan of prepaying Pemex’s debt a month ago. Bloomberg was told in September that the $7bn could be used to cover upcoming sovereign debt payments. President AMLO said, “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…Do you know what happened? The interest on Pemex bonds increased because of what are called vulture funds, which are speculative.”

Pemex’s dollar bonds were stable with its 4.25% 2025s at 101.3 and its 7.69% 2050s at 94.5.

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