Why the bankers suddenly love Mexico

Journal Article · Mon Jul 16 04:00:00 EDT 1979 · Fortune; (United States)

OSTI ID:5852842

Holt, D D

In early 1977, the state-owned oil company in Mexico, Petroleos Mexicanos (Pemex) revealed that it had made huge new discoveries and was ready to exploit the find. Mexico's economy had been in trouble for a number of years. The government had been searching for money to borrow. But now, bankers from all over the world were offering Mexico bank loans - more than it needed - and Mexico was having to determine its best money buy. Oil did not produce the boomy atmosphere by itself; much of the credit goes to President Jose Lopez Portillo. He is now half-way through a 6-year term and has restored confidence in Mexico. He has tempered the euphoria from oilfields with tough, conservative economic policies. He scaled down public spending, developed only 4 new industrial centers in comparison to 50 recommended by the former president, and got the unions to hold wage demands in check. The global aspects of Mexico's financial dealings in the last several years are reviewed, emphasizing the dealings with European banks which account for about 60% of the government's deals. The more significant question now seems to be whether the government can hold to its plan of restrained growth in oil production. The target calls for moving up sharply to about 2.25 million barrels a day by the end of 1980, followed by a leveling off for several years. In sum, Mexico is no longer a second-rate player in the financial markets of the world. (MCW)

• OSTI ID: 5852842
• Journal Information: Fortune; (United States), Journal Name: Fortune; (United States); ISSN FORTA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
DATA
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
ENERGY SOURCES
FINANCIAL DATA
FINANCING
FLUIDS
FOREIGN POLICY
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
INDUSTRY
INFORMATION
INTEREST RATE
INVESTMENT
LATIN AMERICA
MARKET
MEXICO
NATURAL GAS
NORTH AMERICA
PETROLEUM INDUSTRY
PUBLIC POLICY
TRADE
USA