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LatinNews Daily - 08 September 2021

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In brief: Mexico’s Pemex is restructuring debt, says López Obrador

*Mexico’s President Andrés Manuel López Obrador has said that the state-owned oil company, Pemex, is in the process of restructuring its debt, which stood at around US$115bn at the end of Q2 this year. In response to a question during one of his morning press conferences, López Obrador stressed that “Pemex is not adrift, it is not a company like any other, Pemex is a national company, it is a Mexican company”, but gave scant information on the debt restructuring process. He evoked the possible use of US$12.5bn “which has arrived...to the public finances” to help pay off Pemex’s debt, understood to be a reference to the funds recently awarded Mexico in special drawing rights (SDRs) by the International Monetary Fund (IMF). Mexico was allocated US$8.54bn as part of a historic SDR general allocation by the IMF confirmed on 23 August. López Obrador’s plan to use the SDRs to repay debt has been rejected by central bank officials.