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Mexico Gives $3.5 Billion Lifeline to Pemex to Help Finances

  • Government says it will create new five-year business plan
  • Measures aimed at restoring investors’ faith in oil producer
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Petroleos Mexicanos, the world’s most indebted oil company, will get a $3.5 billion cash injection from the government as President Andres Manuel Lopez Obrador orders a new business plan for the struggling company. 

The state-owned producer, which has $113 billion in debt, will use the funds to pay down obligations and also embark on a series of bond buybacks and new issuance to reduce the cost to service its borrowings. As part of the initiative, Pemex will also overhaul its five-year business plan, according to a statement released by the company Monday.