Mexico says public debt at 'sustainable level' of more than 49% of GDP

MEXICO CITY, Oct 30 (Reuters) -

A senior Mexican finance official said on Wednesday that public debt stood at a "sustainable level" of 49.3% of the country's gross domestic product (GDP), adding that further volatility of the peso currency is expected due to the upcoming U.S. election

Deputy Finance Minister Edgar Amador Zamora explained at a press conference that the government's debt level as of the end of the September ensures that "Mexico maintains favorable access to international markets and strengthens its fiscal position."

Since mid-October, the local currency has fluctuated around the psychological barrier of 20 pesos per U.S. dollar, still far from the historic low of 25 pesos per greenback registered during the coronavirus pandemic. The currency traded at around 16.50 pesos per dollar in the first half of this year.

Zamora also said the finance ministry expected that income for state oil company Pemex should improve in the "coming months" as new government management helps grow production capacity.

On Tuesday, Pemex

reported a deeper $8.2 billion third-quarter net loss

, hurt by a weaker exchange rate as well as a prolonged output slump, even as the state-run company benefited from support from the country's new government. (Reporting by Anthony Esposito; Editing by Brendan O'Boyle and David Alire Garcia)