Mexico’s Fox to Propose Cutting Foreign Debt a 3rd Year in 2006
Mexico President Vicente Fox will ask Congress to reduce foreign debt for a third year in his 2006 budget proposal, said Alejandro Werner, chief economist for the Finance Ministry.
“This is a policy that has been successful and we will continue in this direction,'’ Werner said at a Mexico City news conference.
The government cut foreign debt by $500 million both this year and in 2004. Fox last week said he will propose to Congress in September a balanced budget for the first time during his six- year term.
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Mexico's Fox to Propose Cutting Foreign Debt a 3rd Year in 2006
Mexico President Vicente Fox will ask Congress to reduce foreign debt for a third year in his 2006 budget proposal, said Alejandro Werner, chief economist for the Finance Ministry.
``This is a policy that has been successful and we will continue in this direction,'' Werner said at a Mexico City news conference.
The government cut foreign debt by $500 million both this year and in 2004. Fox last week said he will propose to Congress in September a balanced budget for the first time during his six- year
MEXICO CITY - The United States has agreed with a request from Mexico to not prosecute undocumented Mexican migrants affected by Hurricane Katrina who recur to U.S. officials for help, President Vicente Fox said Friday.
"We have agreed with the government of the United States that those who were not documented at the time will not be subject to any pressure or persecution whatsoever," Fox said during a government event Friday afternoon.
"In this way, they can receive help from the American authorities, they can approach the authorities to point out what they've lost and, above all, to ask for support."
Mexico estimates
Mexico's Fox Seeks to Use Oil Revenue to Cut International Debt
Mexican President Vicente Fox's proposed spending plan for 2006 seeks to use revenue from record high oil prices to reduce the nation's international debt to its lowest in more than three decades.
``High oil revenue has a non-recurring nature, so we must use it to strengthen our infrastructure or save it to mitigate the impact of a possible decline in oil prices on public finances and the national economy,'' Fox, 63, said in a message to legislators in the budget.
Fox's plan would allow Mexico, the world's sixth-largest oil
Mexico to Swap Bonds Today to Lower Foreign Debt
Mexico will swap foreign-currency bonds for domestic securities today, the first part of a planned $3.3 billion exchange aimed at making the countrys finances less vulnerable to declines in the peso.
In todays transaction, investors can turn in as much as $500 million of dollar bonds in exchange for peso debt. Investors in November bought warrants from the government that gave them the option to turn in their dollar bonds for peso bonds. In March, the government sold similar warrants to holders of some bonds denominated in European currencies.
The swaps
Mexican troops joined police and civil defense workers in the rescue effort in Aguililla, roughly 410 kilometers (245 miles) southwest of Mexico City.
Local news media reported at least one person had died. Mary Cortez of the Michoacan state civil defense agency said no confirmed deaths had been reported to the state headquarters, but she said people were missing and 200 houses were damaged.
About 10,000 people live in the town of Aguililla, the county seat of an area that has strong family ties, due to emigration, to Redwood City, California.
The flooding came a day after President Vicente Fox toured parts of
Mexico Buys $2.88 Billion of Central Bank Reserves (Update3)
Mexico's government bought $2.88 billion of central bank international reserves that it will use to help meet payments on all foreign debt coming due in 2006 and 2007.
The funds, which the government acquired by selling pesos to the Banco de Mexico, combined with $1.89 billion the government has available from earlier foreign bond sales will cover the $4.77 billion of foreign debt maturing in the next two years, the Finance Ministry said in a statement. Finance Minister Francisco Gil Diaz said that the dollar purchase will allow Mexico's government to stay
Mexico Makes Good on Debt
The Mexican Treasury announces the country has paid off its $1.41 billion in foreign debt to salvage and maintain the country’s financial stability through next year's presidential elections.
Officials say Mexico paid off a portion of 10 bonds due between 2007 and 2033 using funding purchased from the central bank.
President Vicente Fox promises to cover financing needs through 2007 to protect the economy from the financial crises associated with earlier presidential transitions.
Morgan Stanley analyst Gordian Kemen says the announcement came as a surprise to many, but "is very positive.
The government still has $430 million more than what
MEXICO CITY - Five years after a historic election triumph, Mexican President Vicente Fox remains popular despite a slow economy and his failure to beat violent drug gangs on the U.S. border.
A poll by the Reforma newspaper released on Thursday gave Fox a 61 percent approval rating, his highest in more than two years.
Fox has fallen short of promises to create millions more jobs and spur economic growth since he ended 71 years of one-party rule in 2000.
And while Fox claims to be winning the war on narcotics traffickers, drug-related killings have blighted northern Mexican cities.
But the former Coca-Cola executive
Reuters Summit-Mexico's Homex to see free cash flow in 2006
Homex, one of Mexico's largest homebuilders, expects to see positive free cash flow in 2006 for the first year ever, and may use some of the funds to pay down debt, its chief executive said on Wednesday.
Homex (HOMEX.MX: Quote, Profile, Research) (HXM.N: Quote, Profile, Research) and other large, fast-growing players in Mexico's booming housing industry have plowed money into growth in recent years, but some firms are now beginning to produce positive free cash flows.
CEO Gerardo de Nicolas said in an interview at the Reuters Latin America Investment Summit
Emerging debt-Prices rally on Treasuries; Mexico leads
Emerging market debt prices rallied on Friday, boosted by U.S. Treasuries and led by Mexico, where the government announced its second step this week to reduce its outstanding foreign debt.
Mexican external bonds, which usually move in relatively narrow ranges compared with other major EM credits, roared higher. The benchmark global bond due in 203, jumped 2.500 points to bid 124.50 and the global 2019 rose 4.250 to bid 123.750.
Analysts said the surge was driven by the view that debt will become more valuable as it dwindles in supply.
"It was a Mexico colored day," said
