Mexico will extend $6.7 billion in debt to Pemex to pay for its debts by 2025

A budget proposal released on Friday showed that the Mexican government plans to transfer 136 billion Pesos (6.69 billion dollars) to Pemex, the state-owned oil company. This will help Pemex to pay its debts and repay loans.

Pemex's financial liabilities of $97.3 billion include debt payments on bonds of almost $9 billion. Rating agencies have criticized Pemex for its dependence on government assistance to stabilize its finances.

Claudia Sheinbaum took office as president in October. She has stated that the government will continue supporting Pemex, and CFE, a state-owned utility, because of their important role.

According to the budget proposal, the transfer to Pemex will only be made if the company improves its balance sheet by an equal amount. The bill must be debated and voted on by the Congress.

Pemex received approximately 150 billion pesos to pay its debt obligations this year.

Pemex, under the predecessor administration of Sheinbaum, Andres Manuel Obrador received billions of dollar to pay off its debt, increase oil production and build a refinedry that has just started to produce fuel.

(source: Reuters)