How many ways can you ask a president about the status of a canceled airport project?
Judging from today’s first daily press conference with Mexico’s new President Andres Manuel Lopez Obrador, at least five different ways. AMLO, as he’s known, showed his political experience by dodging in as many different ways, effectively providing no direct answer.
The ministry did put out a statement around the same time confirming plans to buy back some of the bonds without saying how much or at what price.
After reports surfaced on Sunday following his inauguration that the government will launch a buy back for at least part of the $6 billion of bonds issued for the new international airport, he neither denied nor confirmed details of the plan and said he’ll meet with the finance minister this afternoon and have more information Tuesday morning at the press briefing.
The trust, which was used to finance the project, will continue in tact while the government deals with the claims, Lopez Obrador said. We won’t default, he said.
That was enough to fuel the bond rally with the battered airport notes surging as much as 10 cents to the highest since mid-October. The price of 85 cents still shows some doubts on how this will be resolved, but clearly investors are more optimistic that it will be dealt with in a responsible manner.
–With assistance from Eric Martin.
©2018 Bloomberg L.P.