Mexico to extend $6.7 billion to cover oil producer Pemex's debt in 2025
Updates with additional detail from budget proposal, context
MEXICO CITY, Nov 15 (Reuters) -The Mexican government expects to transfer 136 billion pesos ($6.69 billion) to state oil producer Pemex next year to help the heavily indebted firm meet its debt and loan repayments, a budget proposal showed on Friday.
Pemex has debt payments of nearly $9 billion coming due on bonds next year, part of its $97.3 billion in financial liabilities. Ratings agencies have long criticized the firm for its reliance on government support to shore up its finances.
President Claudia Sheinbaum, who took office in October, has said that her government will continue to support Pemex and state-owned electric utility CFE because of the key role they play.
The transfer to Pemex is dependent on the company improving its balance sheet by the same amount, according to the budget proposal. Congress must now debate and vote on the bill.
Pemex has received around 150 billion pesos this year to meet its debt obligations.
Under the administration of Sheinbaum's predecessor, President Andres Manuel Lopez Obrador, Pemex received billions of dollars to pay down its debt, boost oil output and build a refinery that is just starting to produce fuel.
($1 = 20.3310 Mexican pesos)
Reporting by Ana Isabel Martinez; editing by Stephen Eisenhammer and Brendan O'Boyle
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
