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Mexico & Nafta - November 2016 (ISSN 1741-444X)

Refinancing debts

Mexico’s finance ministry (SHCP) has announced that it has conducted a new debt refinancing operation in international financial markets. The €1.9bn operation has been billed as an effort to improve Mexico’s debt position in 2017 by taking advantage of the current strong demand for Mexican letters. But given that it comes amid the persistently high peso/US dollar exchange rate, it also appears to be an attempt to ensure that the country’s debt levels do not soar next year should the exchange rate remain unfavourable particularly if the upcoming US general elections produces a result that brings negative consequences for Mexico.

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