From the Field
Pemex to get $3.9-bln government bailout
MEXICO CITY, February 18, 2019 – Mexico’s government has presented a plan to provide state-owned Pemex with a bailout worth USD 3.9 billion, international media reported on Friday.
Put together following the recent downgrade of the company by credit ratings agencies, the scheme aims to help Pemex get its USD 106-billion debt under control. The bailout package includes additional government spending, debt refinancing and tax cuts for the company.
Mexico’s Secretariat of Finance and Public Credit announced at the end of January a separate set of tax readjustments for Pemex intended to free up as much as MXN 11 billion (USD 578 million) per year for reinvestment into the company’s E&P projects.