Mexican Government to Transfer Funds to Pemex

MEXICO CITY (Reuters) – The Mexican government plans to transfer 136 billion pesos ($6.69 billion) to state oil producer Pemex in the upcoming year. This financial support aims to assist the heavily indebted company in meeting its debt and loan repayments, as outlined in a recent budget proposal.

Pemex faces debt payments of nearly $9 billion due on bonds next year, contributing to its total financial liabilities of $97.3 billion. Ratings agencies have frequently criticized the firm for its ongoing dependence on government aid to stabilize its finances.

Newly elected President Claudia Sheinbaum has affirmed that her administration will continue to back both Pemex and the state-owned electric utility CFE due to their significant roles in the economy.

The proposed transfer to Pemex is contingent upon the company improving its balance sheet by an equivalent amount. Congress will now debate and vote on the budget bill.

This year, Pemex has already received approximately 150 billion pesos to fulfill its debt obligations. Previously, under the administration of Sheinbaum's predecessor, Andres Manuel Lopez Obrador, Pemex received substantial financial aid aimed at reducing debt, increasing oil production, and developing a new refinery that has recently begun fuel production.

($1 = 20.3310 Mexican pesos)