Oil hedges would cover 80% of the drop in oil revenues: Yorio

Business

By CAPosts 30 October, 2020 - 04:29pm 18 views

Oil coverage would cover 80% of the drop in oil revenues, said the Undersecretary of Finance and Public Credit (SHCP), Gabriel Yorio.

© elEconomista.es Photo: Reuters

"Last year's budget established a price of 49 dollars per barrel, this price for this year, has practically not been realized ... Today the price of oil is at 32.92 dollars per barrel, which increases the probability that the oil coverage will be executed. make it possible to cover about 80% of oil revenues, "said Yorio.

The official stated that although, at the beginning of the year prices remained regular, but with the impact of the pandemic, global demand contracted, which brought down oil prices.

Between January and September, oil revenues at Public coffers fell 45.7% compared to the same period last year .

In the first nine months of this year, oil revenues were located at 396,959 million pesos, when in the same period of 2019 they totaled 707,351 million pesos, according to " Reports on the Economic Situation, Public Finances and Public Debt for the third quarter of 2020 ".

They use funds

Video: More than 211 thousand jobs have been recovered in October: AMLO (Dailymotion)

Replay video CONFIGURATION Deactivated HD HQ SD LO Skip announcement

The SHCP has used 119,000 million pesos from the Budgetary Income Stabilization Fund (FEIP) to stabilize the fall in public revenues, said Undersecretary Gabriel Yorio.

"We must remember that A year ago the FEIP reached a record amount, in 2019, of almost 300,000 million pesos, and it is likely that this year it will be used in its entirety, "said Yorio.

For next year the FEIP will start with 10,000 million pesos.

For its part, from the Income of the Federative Entities (FEIEP), used to compensate for falls in the participation of the entities , the SHCP has disbursed 54,000 million pesos.

"Through the FEIEP and its empowerment it is ensured that the states receive the 100% of what was programmed in the budget, "said Yorio.

The FEIEP is expected to have a balance of 30,000 million pesos in 2021.