TABLE: Zedillo's Rescue Scheme: Will It Work?
PRICE Zedillo is calling for tight wage- Price controls will be
CONTROLS and-price restraints to enforce. Already, dis
hold down inflation. are being asked to take a
cut in real
Companies are to settle income.
for lower profit margins.
AUSTERITY Zedillo plans to slash the 1995 He is engineering a reces-
MEASURES budget by $5 billion and growth is expected to fall
to 0.5% or
slice the current-account less. This will put pres
sure on domestic
deficit in half, to $14 billion. banks and weak companies.
He hopes this will restore who expected increases in
investor confidence. spending will be dis
RESCUE Mexico is asking the U.S., Can- The crisis dents image of
PACKAGE ada, and other governments emerging market. More money
and international banks for an needed if confidence flags.
$18 billion package to stabilize commercial banks are un
PRIVATIZATION To raise funds, Zedillo wants to Proposals may not be ag-
open ports, railroads, radio, enough to win back massive
and satellite telecom to private of cash from abroad. What
interests. He may allow sales interests foreign investors
of Mexican banks and open up is opening state-run elec-
tricity and oil sectors.
CHARTS BY ALBERTO MENA/BW