Mexico airport debt plan alleviates short-term risks -Fitch

12/04/2018 – Reuters

14946569737_77e2f48637_bBy Vera Eckert

MEXICO CITY, Dec 4 (Reuters) – Credit agency Fitch said on Tuesday that the Mexican government’s proposal to reduce by up to $1.8 billion the outstanding debt of a canceled Mexico City airport project will alleviate some near-term risks.

Leftist President Andres Manuel Lopez Obrador, who took office on Dec. 1, said in October that he would scrap the $13 billion Mexico City airport, arguing that the project was tainted by corruption and would be expensive to maintain.

On the first weekday of his new administration, the Mexico City Airport Trust said it would buy back up to $1.8 billion of $6 billion in debt issued to fund the airport, in an offer that runs through the start of January. (Reporting by Veronica Gomez; Editing by Anthony Esposito)

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