World News

Mexico finance minister says oil proceeds in budget covered

MEXICO CITY (Reuters) – Mexican Finance Minister Arturo Herrera said on Thursday that “everything” in the federal budget from oil payments was covered, with oil hedges protecting 80% of the revenues and “reserves” covering the remainder.

Questioned in an interview with newspaper Reforma whether the credit rating of state oil company Petroleos Mexicanos [PEMX.UL] presented a risk to public finances, Herrera said the risk existed, but was low due to the oil hedging program.

(Reporting by Sharay Angulo; writing by Drazen Jorgic)