The Mexican government plans to provide 136 billion pesos ($6.69 billion) to the state-owned oil producer Pemex next year to help it pay off its debts and loans, according to a recent budget proposal released on Friday.
Pemex has significant financial liabilities totaling nearly $97.3 billion, with approximately $9 billion in bond payments due next year. For some time now, credit agencies have been criticizing the firm for relying heavily on government assistance to stabilize its finances.
President Claudia Sheinbaum, who took office last October, has stated that her administration will continue supporting Pemex and the state-owned electric utility CFE due to their crucial roles in the country’s economy.
The proposed transfer of funds to Pemex is contingent upon the company improving its balance sheet by an equivalent amount. The Mexican Congress now needs to review and vote on the budget bill.
This year, Pemex received about 150 billion pesos to meet its debt obligations. Under the previous administration led by President Andres Manuel Lopez Obrador, Pemex received substantial funds to settle its debts, enhance oil production, and construct a refinery that is just beginning to produce fuel.
Source: Reuters
