Nearing Tequila Crisis-Era Debt Levels Gives Mexico a Hangover
- Debt-to-GDP has risen 8 percentage points under Pena Nieto
- Vows to cut spending not enough to ease all concerns: Barclays
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Mexico’s surging debt load is raising red flags for Deutsche Bank AG and Barclays Plc.
The broadest measure of debt as a percentage of gross domestic product has swelled to 46 percent from 38 percent in President Enrique Pena Nieto’s first three years in office as plunging oil prices eroded government revenue and a weak peso made it more expensive to borrow in dollars. That compares with a 2 percentage-point increase in the three years before he took office, government data show.