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CFE announces that it will invest $20 billion in infastructure

The first problem is "does the government know?" because there's not $20 billion lying around in the coffers of the Mexican government.  Everything indicates that they've already looked in every drawer and spent everything.  The announcement indicated that CFE wants to keep the lead as Mexico's energy producer -- already it's about 80% 53% that is generated by CFE -- so its leader wants to increase that amount.  The only problem is that CFE has been a cash cow for years -- and has a horrendous balance sheet.  Any borrowing (and it will be borrowing) will have to be approved by the Mexican Treasury -- and probably specifically guaranteed by them, because of all the stunts that the Mexican government pulled with lenders.

BTW when I say cash cow I mean paying dividends to the government even when it was losing money, not prosecuting energy theft, which is rampant (but mostly done by poor people) but who consume, individually, very little power.

Again, all this could be vaporware!  



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