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Petrobras's Dangerous Debt Math: $24 Billion Owed in 24 Months

  • The sovereign is weak, too, but investors are counting on it
  • Petrobras has options in crisis, just not palatable ones
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The debt clock is ticking down at Brazil’s troubled oil giant, Petrobras. Next up: $24 billion of repayments over 24 months.

That’s a towering hurdle for a company that hasn’t generated free cash flow for eight years and whose borrowing rates are soaring. Annual debt servicing costs have doubled to 20.3 billion reais ($5.4 billion) in the past three years.