This site uses cookies. By continuing, your consent is assumed. Learn more

125.1fm shares

Cfe developing consolidating debts


Almost seventeen years after the nationali- zation of the electrical industry, all of our forewarnings have been fulfilled.

A CFE Signature Loan is...

Techni- cally, the Federal Electrical Commission is in Cfe developing consolidating debts. This enterprise is so debt-ridden that the owner is not the Mexican nation but rather foreign interests, principally North Ameri- can, who dictate its policies in the interests of the transnational corporations.

As of Decemberthe CFE accounted for 23 percent of the total public foreign debt, tripling its size from to And in this same year 70 percent of the total income of this industry was going to pay off the foreign debt. High government officials blame each other and past administrations for the problem.

You are here

And mean- while, from Washington and New York suites, officers of the International Monetary Fund, the World Bank and Chase Manhattan glare menac- ingly at the Mexican government and "advise" it to become more efficient with its electrical energy, if it Cfe developing consolidating debts any future loans. Capitalism never plans socially. Two parallel state companies the CFE and the Compania de Luz y Fuerza in Mexico City continue to administer the industry and are themselves subdivided into more than ten separate agencies.

The reason for keeping the industry divided and thus inefficient is basically political, since the integration of the industry would also bring with it the unification of the three major electrical unions 80, workerspossibly unleashing a force the state does not want to contend with see Part II. The state, consequently, has assumed the entire burden of rural electrification, Cfe developing consolidating debts electric lines to some 10, rural towns between with loans from the World Bank.

Still, 25 percent of the population of Mexico Cfe developing consolidating debts without electricity. Fromelectrical rates remained unaltered for industry, while the cost of raw materials, labor and especially machinery and technology rose con- stantly. Most private companies paid between centavos per kilowatt hour during these years, while production costs for the CFE were 41 centavos per kilowatt hour. The most striking, and indeed dangerous, example of such technology is the multimillion dollar contract the CFE has recently signed with General Electric for the installation of nuclear plants to generate electricity - using enriched uranium they must obtain from the United States.

The first system G. Interest payments are consum- ing a growing portion of the new loans taken out each year, caused in part by the rising interest rates in the worldwide money market.

The CFE, like the other state-owned enterprises, is used to enrich the foreign-dominated private sector instead of providing for the most basic needs of the Mexican people.

Curriculum for Excellence Progress Levels....

Thus it is a sad but accurate example of the role played by the state in a dependent capitalist nation like Mexico. The practice of state subsidies to the private sector was actively encouraged by the interna- Sept.

However, the economic recession of the 's and the colossal growth of Mexico's foreign debt have sent a tremor of anxiety through the inner circles of international finance. What if the Mexican government should default on its debt repayments? This fear caused the World Bank, as early asto advise the Mexican government to raise the electrical rates and to condition further credits on such an increase.

As the crisis deepened in and the IMF pressure on Mexico grew, the government once again raised the rates. Finally, in March President Lopez Portillo declared still another electricity rate increase. His proposal also included the freezing of all hiring by the CFE, and holding wage hikes to a maximum of 10 percent.

This policy, aimed at the electrical workers, Cfe developing consolidating debts already caused 15, full-time workers to be fired, according to the head of one electrical union. On the one side, local capitalists and especially foreign investors demand subsidies and special treatment from the state sector, and threaten to "run away" if the response is not generous enough. But decades of subsidies and foreign loans have drained the resources of the state and put it at the beck and call of the international credit institutions, who are now demanding a balanced budget above all else.

As some authors have pointed out, this contradic- tion between specific needs of individual corpor- ations and the general needs of the capitalist system, as articulated by the IMF, IDB, World Bank, etc. In general, given the debt crisis, there are only two possibilities for the survival of capitalism in Mexico: I a major reform of the state enterprises to make the big companies pay their share, which would cause some serious confrontations with imperialism and the Cfe developing consolidating debts bourgeoisie, or 2 a frontal aggression against the masses, taking more from the working class where there is nothing left to take.

If you have more than...

This is the Cfe developing consolidating debts of the landowners, the right, and some sectors of imperialism like the IMF. They all have their representatives in the Mexican government What will determine which of these positions within the state consolidates will depend upon the correlation of forces outside the state, especially the independent organization of the working class.

Information from research of the Democratic Tendency and Solidaridad, For a complete list of the state-owned enterprises see Juan Felipe Leal, op. Excelsior, June 28, The issue of nuclear energy is just recently coming to the forefront in Mexico and is one of mutual concern for people on both sides of the border.

Financial Tools

Martinez Dominguez inSiempre, May 25, For more on the recent changes in the electric rates and other reforms see: Comercio Exterior de Mexico, Mayp. Roberto Castaneda, "Los limites del capital- ismo en Mexico. Las finanzas del regimen," Cuadernos Cfe developing consolidating debts, 8, April-June A CFE Signature Loan is unsecured with a fixed monthly payment that allows you to Go on the vacation you always wanted to take or consolidate your bills.

from the Federal Government to PEMEX and CFE inrevenues increased.

Breakeven Analysis, Business Debt Consolidation...

Mexican Petroleum Fund for Stabilization and Development. consolidation plan, strengthening the public debt portfolio in order to deal in.