* Mexican bank BBVA Bancomer has presented its report on Mexico’s economic outlook for the second quarter of 2019, in which it describes state-owned oil company Petróleos Mexicanos (Pemex) as the country’s greatest macroeconomic risk. The report noted that lower GDP growth and problems related to Pemex present a challenge for Mexico to meet its fiscal targets. During the presentation of the report, BBVA Bancomer’s chief economist
Carlos Serrano recommended that Pemex use strategic farmout partnerships to attract private capital despite the investment restrictions imposed by future debt repayments. Farmouts are public-private sector partnerships that allow a company to stabilise production and share financial risks.
Serrano also recommended that, given Pemex’s low credit rating, the federal government issue debt bonds to facilitate the state-owned oil company’s refinancing.
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