By December 15, 2015 Read More →

Strangled by low oil prices, Mexico gov’t slow on contractors’ payments

Low oil prices could mean bankruptcy for Mexico’s largest construction firm

low oil prices

Low oil prices are hitting government contractors in Mexico hard, putting thousands of jobs in Mexico at risk.  Pemex twitter photo.

MEXICO CITY _ Getting paid has always been hard for government contractors in Mexico, but seldom has the problem been so bad, as low oil prices batter government finances.

The problem now has broken out into the open, with government contractors openly complaining and analysts saying the country’s largest construction firm could be near bankruptcy.

The head of Mexico’s top business chamber publicly rebuked President Enrique Pena Nieto on Monday, saying that late payments were putting Mexican businesses at risk of bankruptcy.

Juan Pablo Castanon said the late payments “put at risk the jobs of thousands of families in Mexico.”

The president’s office said Tuesday it had no response to the comments.

The Canadian Press

Posted in: Energy Financial

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