Mexico says to cut spending, put major rail project on ice
MEXICO CITY Jan 30 (Reuters) - Mexican Finance Minister Luis Videgaray said on Friday that the country would cut spending by 124.3 billion pesos ($8.29 billion) and indefinitely postpone a $3.75 billion rail project amid a global slowdown and tumbling oil prices.
Speaking at an event in Mexico City, Videgaray said the country would suspend the scheme to build a high-speed rail link between Mexico City and the central city of Queretaro. Plans for a new multi-billion dollar airport remain in place, he said.
A slump in oil prices has battered Mexico's peso, which reached a nearly 6-year low earlier this month. Oil revenue has typically made up about a third of the federal budget. ($1 = 14.9925 Mexican pesos) (Reporting by Simon Gardner)
© Thomson Reuters 2017 All rights reserved.