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Pemex Assistance Plan Fails to Impress Bondholders

  • Lopez Obrador increases tax relief, investment for Pemex
  • State-owned oil producer struggling under $107 billion in debt
Total Debt
Updated on

Mexico’s Petroleos Mexicanos, the world’s most indebted oil company, will refrain from issuing new bonds this year and begin prepaying existing liabilities as part of a broad turnaround plan. The peso and the company’s bonds fell on investor doubts that the steps will be enough.

Pemex, as the company is known, will boost investment this year to 288.1 billion pesos ($14.9 billion), 5.5 percent more than an original estimate, Chief Financial Officer Alberto Velazquez Garcia said on Friday. President Andres Manuel Lopez Obrador’s administration will also expand tax breaks for the state-run firm to 90 billion pesos spread over six years, a 36 percent increase.