1996-10-17 Local Press - ECONOMY
Article Index
ECONOMY
"Compromise" on Petrochemical Issue.
After the PR' National Congress rejected the privatization of the petrochemical industry two weeks ago, government officials scurried to find a way of pleasing both private investors and their political base. The new rules, announced on October 13, will only allow 49% private ownership (domestic or foreign) of existing plants, while maintaining public control over 51%. However, new petrochemical plants will be allowed to open after January 1, 1997 with 100% private capital. (La Jornada, 14 October).
Privatization of Pension System Begins
With the publication of the regulatory framework for the System of Savings for Retirement (SARs), the government formally initiated the privatization of Mexico's pension system, whose assets amount to more than 74 billion pesos (about $10 billion). Foreign investors will be allowed to control up to 49% of pension plans. (El Financiero, 11 October).