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Energy
Pemex Begins Exploration In Deep Waters Offshore Of Tamaulipas
November 3, 2008
Pemex announced that it has started research and exploration activities in deep waters in the Gulf of Mexico offshore of the state of Tamaulipas to identify new hydrocarbon-rich oilfields. Pemex said that the first the exploration stage, which will conclude in December, will allow the firm to confirm the area's potential oil wealth. The second exploration phase will begin in May 2009.
SENER: Lack Of Personnel, Equipment To Impact Crude Oil Production
November 3, 2008
The Energy Ministry (SENER) warned that Pemex may face a serious lack of personnel and equipment that will directly impact crude oil production. SENER said that there is not enough drilling equipment or engineers in the world to provide for every oil-producing country's needs. The International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) also warned about the lack of material and human resources that will affect Pemex.
SEMARNAT: Oil Sector Reform To Allow Better Use Of Renewable Energies
November 3, 2008
According to the Environment Ministry (SEMARNAT), the oil sector reform recently passed by Congress will enhance the use of renewable energies in Mexico. SEMARNAT added that the reforms will boost the production of alternative power sources to 26%, up from the current 21%, by the end of President Calderon's administration in 2012.
Pemex Suspends Rig Rental Tender
November 7, 2008
Pemex Exploracion y Produccion (PEP) announced that it has suspended its international tender for the rental of one semisubmersible rig or drillship, and four independent leg cantilever jack-up rigs. Pemex will launch a new tender for the rigs this month to replace the original. The semisubmersible rig or drillship must be capable of operating in water depths of at least 4,200 feet and drilling to depths of 25,000 feet. One of the jack-up rigs would need to operate in 350-foot water depths and have drilling capacity of 25,000 feet. The other three jack-up rigs would need to be capable of operating in water depths of at least 250 feet and drilling to depths of 20,000 feet.
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Trade & Investment
Mexico, Paraguay Seek To Strengthen Ties
November 3, 2008
President Calderon and visiting Paraguayan counterpart Fernando Lugo met to strengthen trade and bilateral relations. Calderon said that he wished to open "a new era of bilateral economic exchanges, cooperation and friendship." He added that Lugo is a leader who knows how to meet the hopes of the Paraguayans by creating a new democratic era in his nation. Lugo, who was on a two-day official visit in Mexico, said that he believed both governments and peoples would boost dialogue and links between them, and that the two countries should work together to face difficult times.
Cuba, Mexico Expect Trade To Double
November 6, 2008
According Cuban Foreign Investment and International Cooperation Minister Marta Lomas, bilateral trade between Cuba and Mexico grew 89% during the first nine months of this year, compared to the same period in 2007, and it is expected to be up 100% by year-end. The island's trade with Mexico totaled USD 280 million in 3Q alone, a figure that reflects the "rising trend." Meanwhile, Mexican Ambassador to Cuba Gabriel Jimenez Remus said bilateral trade had made "notable" progress this year and would likely double by the end of the year.
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Banking, Insurance & Finance
Foreign Investors Sell Assets In Government Bonds
November 7, 2008
According to a study by a subsidiary of U.S. bank Citigroup, foreign investors sold Mexican government bonds valued at approximately USD 6.7 billion during October. The figure indicates a 23.6% reduction in sales of Mexican government bonds owned by foreign investors when compared to September's results, when the sale of the papers amounted to approximately USD 28.3 billion.
Inbursa, Criteria Caixa To Open 350 Bank Branches In Mexico
November 7, 2008
Mexican financial group Grupo Financiero Inbursa said that it plans to open 350 branches across Mexico over four years as part of an ambitious expansion strategy with its new Spanish partner, Criteria Caixa Corp. The investment arm of Spanish savings bank La Caixa, which recently purchased 20% of the Mexican bank for EUR 1.6 billion, said that Inbursa seeks to double its credit and deposit share in the coveted Mexican banking market. The expansion will be funded with Criteria's cash injection and backed by the industrial know-how of Criteria's parent.
Former Inverlat Shareholders File USD 500 Million Lawsuit Against Scotiabank
November 7, 2008
Shareholders of former Mexican bank Inverlat have filed a USD 500 million joint lawsuit in New York against Canada's Bank of Nova Scotia's Mexican subsidiary Grupo Fianciero Scotiabank for alleged breach of contract. About 150 Inverlat shareholders have joined the suit. Scotiabank started acquiring Inverlat shares in 1996. In 2004, Scotiabank paid around USD 53 million for a 6.3% stake to raise its total ownership of Inverlat to 97.3%.
Legislators Call For Afores' Risk Capital Instruments To Be Lowered
November 1, 2008
Legislators at the Lower House's Labor Commission have proposed a reform to the Pension Savings Systems Law in order to reduce the amount of pension fund managers' (Afores') risk capital instruments placed in foreign stock exchanges from 20% to 10%. The proposal was issued as workers' pension savings have been falling due to the global financial crisis. Legislators said that Afores must provide certainty, security, and confidence and prove they are capable of handling the resources and prevent them from being negatively affected by turbulence in the international financial system.
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Business & Industry
President Calderon Announces MXN 250 Billion For SMEs
November 3, 2008
President Calderon announced during the Small and Medium-Sized Enterprises (SMEs) National Week 2008, that his government will implement a series of measures to support and stimulate SMEs in Mexico. The stimulus package includes a MXN 250 billion fund to provide guarantees to SMEs and facilitate their eligibility for loans.
BMV: Large Mexican Firms' Joint Liabilities Amount To MXN 37 Billion
November 5, 2008
According to Mexico's Stock Exchange (BMV), the joint debt – to expire December 31 – of some of the 20 largest Mexican firms, including Cemex, Coppel, Carso Global Telecomm, America Movil, Geo, Comercial Mexicana, some banking institutions and governmental funds, amounts to approximately MXN 37.3 billion.
CCL Container To Invest MXN 340 Million In Mexico
November 6, 2008
U.S. specialty packaging and labeling solutions for the consumer products and healthcare sectors CCL Industries announced that it will capitalize its Mexican unit with MXN 340 million through a private offering. In addition CCL said that the construction of its new facility in San Jose Iturbide, in the state of Guanajuato, is expected to be concluded by the end of the year. The plant will initially employ about 65 people.
Vitro Secures USD 100 Million In Cash With Real Estate Assets
November 5, 2008
Mexican glass maker Vitro announced that it has secured USD 100 million in cash from government development bank Bancomext to boost its liquidity. Vitro said it received an initial payment backed by real estate assets that have been put into a trust structure. Vitro disclosed last month that it was in talks with creditors after it reported a USD 227 million loss in derivatives, principally natural gas.
Whirlpool To Expand Its Presence In Mexico
November 5, 2008
U.S. appliance manufacturer Whirlpool Corporation announced that it plans to broaden its presence in Mexico by opening new plants, such as its technology center in the state of Nuevo Leon. Whirlpool's director Jeff Fetting made the announcement directly to President Calderon in a private meeting. According to Fetting, the firm seeks to turn Mexico into its main logistics center and product supplier in the world.
Panama's ASEP Awards Concession For Hydroelectric Plant To CICSA
November 6, 2008
Panama's Public Services Authority (ASEP) has awarded a concession to Mexican billionaire Carlos Slim's construction company CICSA-Ideal to build a hydroelectric plant in that country. However, Panamanian businessman Cesar Lisac has filed a lawsuit against ASEP after the authority withdrew the concession for the construction of the plant from his company. ASEP said it withdrew the concession after Lisac failed to meet the time requirements to start works.
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Automotive
Changan To Make Cars In Mexico, Eyes U.S. Market
November 6, 2008
Chinese automaker Changan Automobile Group announced plans to build a manufacturing plant in Mexico with a local firm and aims to export cars to North America. Changan said that it has signed an initial agreement with its Mexican partner – which was not identified – to make compact and midsized cars. The plant, whose location was not disclosed, would start operations at the end of 2009 or early 2010 and would have an initial capacity to produce 50,000 vehicles.
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Housing & Mortgaging
World Bank Approves USD 1 Billion Loan For Sociedad Hipotecaria Federal
November 6, 2008
The World Bank (WB) said it has approved a USD 1 billion loan for Mexican mortgage development bank Sociedad Hipotecaria Federal (SHF). SHF provides funding and loan guarantees to private sector mortgage lenders in Mexico. The project will help SHF refinance its short-term debt with long-term debt, and provides technical assistance to improve its financing of low-income housing. SHF had negotiated the loan last month and is also seeking USD 2.5 billion from the Inter-American Development Bank (IADB).
Fitch Warns On Mexican Mortgage Debt Issues
November 3, 2008
Fitch Ratings placed four Mexican mortgage-backed bonds issued by small nonbank lenders on ratings watch negative. Fitch warned the mortgages that make up the debt, issued by Credito y Casa and Su Casita, showed growing signs of past-due payment problems. Only in the past few years have banks and specialized lenders in Mexico begun selling mortgage-backed debt. The market for those issues remains small and has yet to attract significant interest from big foreign investment funds. Most of Mexico's mortgage-backed debt is held by local pension funds and insurance companies.
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Construction & Infrastructure
OHL Secures MXN 6 Billion Loan For Mexico Road Order
November 3, 2008
Spanish builder OHL's Mexican concessions unit announced that it has secured a MXN 6 billion loan to refinance debt and build part of a ring road in Mexico City. OHL said that Spanish-Mexican bank BBVA Bancomer has structured the loan. Local banks Banobras and Banorte are also taking part in the lending.
SCT Announces Tenders For Port Infrastructure For MXN 800 Million
November 4, 2008
The Communications and Transport Ministry (SCT) announced upcoming tenders for port infrastructure and said that they amount to MXN 800 million. The tenders are for modernization works and to expand the container-handling capacity of the ports of Mazatlan and Guaymas, in the states of Sinaloa and Sonora, respectively.
E.U. Probes Cement Companies Cemex, Lafarge
November 4, 2008
European Union (E.U.) competition authorities have started an investigation into some of the world's top cement producers, including France's Lafarge, Swiss Holcim and Mexico's Cemex. Cemex said representatives from the E.U.'s competition authorities visited its offices in Germany and the U.K. and have started an investigation into the European cement industry. The Commission said it raided the offices on suspicion that firms were running a cartel and abusing their dominant positions in the marketplace.
Cemex Sells Canary Island Assets To Cut Debt
November 7, 2008
Mexican cement maker Cemex said it would sell its Canary Island operations to Spanish investment firm Cimpor Inversiones for USD 211 million to pay down debt. The deal includes cement and ready-mix assets in Tenerife and half the shares in two other joint ventures. Cemex embarked on asset sales this year to reduce its USD 16.4 billion in arrears; Cimpor Inversiones is a subsidiary of Cimpor Cimentos de Portugal.
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Retail
Wal-Mart Seeks To Boost Sales With Renewed Strategies
November 5, 2008
Walmex, the Mexican unit of U.S. retailer Wal-Mart, is offering lower prices in most of its products as a renewed strategy to boost sales and market share before the Christmas period, in the middle of the global credit crisis. The core of Walmex's strategy resides in offering cheap groceries at its Wal-Mart, Aurrera and Superama stores, cheap dishes and clothes at its Vips restaurants and Suburbia subsidiaries, respectively.
Soriana Cuts Prices By 50% In 10,000 Products
Novemer 6, 2008
According to a top executive from Mexican retailer Soriana, the company has launched a strategy consisting of cutting prices for 10,000 products of massive consumption by 50%. Soriana said that the strategy aims at gaining greater consumer loyalty. According to a comparative study by Citi Investment Research, Soriana had the highest prices when compared to peers Comercial Mexicana and Walmex.
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Transportation
PAC, OMA October Passenger Traffic Down 15%, 10.5% Respectively
November 6, 2008
Mexican airport operators Grupo Aeroportuario del Pacifico (PAC) and Grupo Aeroportuario del Centro Norte (OMA) said that their total traffic fell in October 15% and 10.5%, to 1.54 million and 1.04 million passengers, respectively, from the year-ago month. PAC operates 12 airports while OMA operates 13. The companies attributed the losses mainly to the recent suspension by federal regulators of low-cost domestic airlines Avolar and Aerocalifornia, as well as operational reductions by others, including Aviacsa and VivaAerobus.
ALMA Airlines Suspends Operations Definitely
November 7, 2008
Mexican low-cost airline Aerolineas Mesoamericanas (ALMA) announced that it has suspended its operations definitely and filed for bankruptcy. ALMA announced in its website that it is unable to provide a safe and quality service to its clients due to the lack of additional financing and other resources amid the global credit crisis.
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Telecommunications & Technology
Telmex Cancels USD 60 Million Investment In Peru
November 4, 2008
Telmex's Peruvian subsidiary announced that it is cancelling a USD 60 million investment it had planned for this year due to problems in obtaining municipal licenses for infrastructure projects. The company explained that they were unable to install antennas and grids to provide triple play and other services because they found some difficulties while trying to secure permits.
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Hospitality & Tourism
Goodman, Hansa Confirm Plans To Build Tourism Project In Baja California Sur
November 5, 2008
U.S. real estate company Goodman Real Estate and Spanish developer Hansa Urbana
confirmed the construction of the Cabo Cortes tourism project in the state of Baja California Sur. The project, to be built on 3,814 hectares, will feature hotels, condominiums, villas, golf courses, beach clubs, commercial areas, restaurants, spas, and an airport, among other services.
Grupo Xtra Announces USD 300 Million Project In Mayan Riviera
November 2, 2008
Mexican conglomerate Grupo Xtra announced that it has plans to launch a USD 300 million tourism project in the Mayan Riviera. The Milla de Oro project will feature three Marriott International resorts. The complex will have a JW, a Renaissance and an Edition hotel, all brands of U.S. hotel company Marriott.
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Economy
Mexico's Foreign Reserves Up USD 565 Million To USD 77.14 Billion
November 7, 2008
The central bank (Banxico) said that Mexico's foreign reserves rose USD 565 million to USD 77.14 billion on October 31, mostly on dollars (USD) purchased from Pemex. Banxico, which sold USD 13.1 billion in reserves last month to counter pressure on the peso (MXN) from the global credit crisis, sold no dollars between October 27 and October 31. Banxico said it bought USD 500 million from Pemex recently, while other operations added USD 65 million to the reserves. Banxico auctioned off USD 400 million on November 4 in foreign reserves to boost the peso after it tumbled anew.
MXN, Stocks Hammered By U.S. Economy Worries
November 6, 2008
The Mexican peso (MXN) tumbled and stocks fell after bleak reports from U.S. companies fueled worries of a deepening economic downturn in the U.S., Mexico's top trading partner. The peso weakened 3.22% at the central bank's (Banxico's) final reference to MXN 13.07/1 USD. The peso had fallen more than 4% during the session and Banxico sold USD 400 million to support the battered currency. The benchmark IPC stock index ended 3.89% lower at 19,650.86 points.
Inflation Soars To Seven-Year High In October
November 7, 2008
Mexican inflation jumped to its highest in seven years in October on rising energy prices, keeping pressure on the central bank (Banxico) to hold interest rates steady despite signs of a sharp economic slowdown. The annual inflation rate climbed to 5.78% as higher costs for electricity and gasoline drove the price index up a higher-than-expected 0.68% during the month.
Consumer Confidence Dives To Record Low In October
November 5, 2008
According to the central bank (Banxico), remittances sent home by Mexicans living abroad will probably post modest growth in the fourth quarter, even though overall flows are seen falling to about USD 23.5 billion in 2008. Banxico said that although Mexican migrants living in the U.S. took advantage of a weakening peso and sent home more money in September, remittances will still fall an estimated 2.5% this year.
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Border & Migration
Mexico To Ask Migratory Reform From Next U.S. President
November 4, 2008
Mexico's Foreign Affairs Minister Patricia Espinoza said that Mexico will ask U.S. President-elect Barack Obama to promote a migratory reform that acknowledges the migrant's contribution to the U.S. economy. Espinoza said that Mexico followed with great interest the U.S. presidential election and that it will look forward to maintaining continuity in the bilateral agenda.
INM: Repatriated Mexicans From The U.S. Reach New Record High In August
November 4, 2008
According to the National Migration Institute (INM), the number of Mexicans that were repatriated from the U.S. between January and August reached a new record high at 406,394. The figure represents a 3.1% increase when compared to the year-ago period, when 394,281 Mexicans were deported. The INM added that 11.6% of Mexicans that have been deported from the U.S. since the beginning of the year are minors.
SEP Officer: "Brain Drain" Increases As The Brightest Go North
November 5, 2008
According to Rodolfo Tuiran, Mexico's education undersecretary and a demographic expert, Mexico's relatively weak economy has already pushed thousands of low-wage workers toward the U.S. and is now pushing highly educated workers on the same path. Tuiran said the brain drain threatens Mexico's prosperity as other places provide better job offers and the highly trained workers that leave Mexico represent a tremendous potential for the country. In addition, data from the International Organization for Migration (IOM) indicated that there are between 14,000 and 19,000 Mexicans with a doctorate degree residing in the U.S.
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Politics
Hispanics, Young Voters, Women Help Obama Win
November 5, 2008
Barack Obama drew on support from Hispanics, young voters and women to win the U.S. presidential election and score victories in New Mexico, Nevada and Colorado, three Western states that voted for President Bush in 2004. Obama also contributed to an Election Day sweep in New Mexico that put the state's entire congressional delegation in Democratic hands for the first time in 40 years. Florida's Hispanic population also voted heavily for Obama after decades of allegiance to Republican presidential candidates. Meanwhile, several polls found on average that 70% of Mexicans prefer Obama, and the country's majority believe that Mexico's relationship with the United States will be better with the Democratic candidate as President.
Deputies Send Questions To President Calderon Regarding His Annual Report
November 7, 2008
The Lower House of Congress has prepared a document with 68 questions about President Calderon's second State of the Nation Report. Legislators were most interested by social development, farming, public security, justice, infrastructure and education issues and proposals in the President's report, which was submitted to Congress on September 1. Legislators from all political parties contributed with some questions.
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Justice, Safety & Crime
Interior Minister, Officials, Civilians Die In Mexico City Plane Accident
November 4, 2008
Interior Minister Juan Camilo Mouriño and other officials, including Jose Luis Santiago Vasconcelos, who was a top officer at the Public Security Ministry, died when the plane in which they were traveling crashed in a crowded Mexico City (DF) neighborhood into evening rush hour traffic. In addition to the officials, the plane crew and civilians on the ground perished. Total victims amounted to 14, but there are several severely injured people fighting to remain alive. Total injuries are estimated at 40; over 30 cars were totally destroyed and nearby buildings were damaged. The plane, manufactured by Canadian aircraft manufacturer Bombardier Aerospace, belonged to the Interior Ministry (SEGOB) and took off from an airport in the state of San Luis Potosi. Mexican authorities said aerospace experts from the United States and the United Kingdom traveled to Mexico to examine the Learjet 45's two black boxes and determine what caused the tragedy. Preliminary reports said that the crash was an accident, but authorities did not immediately reject the possibility of foul play. U.S. Ambassador to Mexico Tony Garza said that experts from the National Transportation and Safety Board so far have found no evidence that suggests sabotage or criminal activity. Nevertheless, reports indicate that Mexicans are nervous and many disbelieve the explanations given by the government to justify the event.
Mexico Holds State Funeral For Former Interior Minister, Officials, Plane Crew
November 6, 2008
Around 1,000 mourners gathered in Mexico City's Campo Marte military installation for the state funeral of Mexico's Interior Minister, Juan Camilo Mouriño, and the other eight occupants of the Interior Ministry's (SEGOB) airplane that crashed in Mexico City early this month. President Calderon paid homage to the man who was his closest collaborator and intimate friend and was widely seen as a possible future presidential candidate. Attending the ceremony were the victims' families, Supreme Court justices and the leaders of Congress and Mexico's main political parties, among other guests.
Obama Supports Mexico's Fight Against Drug Cartels
November 7, 2008
According to a communique by the President's office, Barack Obama, who was elected as the next U.S. president, offered to support President Calderon's fight against the country's powerful drug cartels. The communique said Mr. Obama told President Calderon during a phone call that he would provide all his government's support in the crackdown against drug traffickers. President Calderon made the call to congratulate Mr. Obama on his election.
Largest Cartel Weapons Cache Found In Mexico
November 7, 2008
The National Defense Ministry (SEDENA) announced that the army has made the largest seizure of drug cartel weapons in Mexico's history. The cache of 540 rifles, 165 grenades, 500,000 rounds of ammunition and 14 sticks of TNT were seized at a house in the city of Reynosa, in the state of Tamaulipas, across the border from McAllen, Texas. Officials said that weapons in this seizure belonged to the Gulf drug cartel. The largest previous bust involved a cache of 280 weapons found in 1984.
Mexico Captures Top Gulf Drug Cartel Hitman, Leader
November 7, 2008
Federal police announced that they have captured Jaime "The Hummer" Gonzalez, a leader of the Zetas, the armed wing of the Gulf drug cartel, and flew him to the capital after a shootout near the U.S.-Mexican border. Gonzalez, a deserter from the Mexican army and a founding member of the Zetas, was caught in the city of Reynosa, in the state of Tamaulipas. Authorities said security forces burst in on Gonzalez in a house and nabbed him without firing a shot, but a group of armed men later tried to free him from police custody as he was taken to the Reynosa airport for his transfer to Mexico City (DF). In a separate operation, police also arrested Antonio Galarza, the leader of the Gulf cartel in Reynosa, and flew him to DF as well.
Sonora's State Police Chief Slain In Nogales
November 4, 2008
According to the Attorney General's Office in the state of Sonora, gunmen ambushed the director of the state's police, killing him with a barrage of gunfire as well as grenades as he entered a hotel in central Nogales alongside his bodyguard and other law enforcement officials. Juan Manuel Pavon Felix died a short time later in a local hospital. U.S. Marshal David Gonzales and others in Arizona's law enforcement community knew Pavon from his involvement in a binational police organization called Policia Internacional Sonora.
Mexico Registers Most Violent Day In 2008 With 58 Crime-Related Deaths
November 3, 2008
According to press reports, Mexico registered the most violent day yet in 2008 with 58 crime-related deaths across the country. The reports said that 7 of the casualties were police officers. The cities that were most affected by the crime wave were Culiacan, Tijuana and Ciudad Juarez, in the states of Sinaloa, Baja California and Chihuahua, respectively.
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Arts & Culture
Mexico City Mayor Calls For Help In Maintaining The City's Cultural Heritage
November 4, 2008
Mexico City (DF) Mayor Marcelo Ebrard said that the federal government has "obliterated" the historic and cultural heritage of the city's downtown, and called for help from the Lower House of Congress. Ebrard said that the federal government's 2007 budget to maintain the city's historic buildings was only MXN 12 million, and he considered the amount insufficient. Therefore, Ebrard called for the Lower House to approve MXN 300 million for the preservation of the city's cultural and historic patrimony.
Mexico's Axolotl Faces Extinction Threat
November 3, 2008
According to scientists, the foot-long axolotl, also known as the "water monster" and the "Mexican walking fish," is in danger of extinction, a victim of pollution and nonnative fish that are eating its food and its breed. The axolotl is found beneath the tourist gondolas in the remains of a great Aztec lake amid Mexico City's suburban sprawl. The axolotl is a key part of Aztec legend and diet.
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Other
Mexico City Prepares Zocalo Ice Rink
November 7, 2008
Mexico City's (DF) government has started setting up the world's biggest ice rink in the Zocalo, the city's main plaza, for the second straight year. Last winter, thousands of people skated on the rink which was set up in a bid to bring some holiday cheer to the metropolis. The rink's surface is 3,200 square meters (34,445 square feet). It is free and provides skates to those who do not have them. The Zocalo's rink is believed to have been inspired by the Rockefeller Center rink in New York City.
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