MEXICO CITY (Reuters) – The Mexican government expects to transfer 136 billion pesos ($6.69 billion) to state oil producer Pemex next year to help the heavily indebted firm meet its debt and loan repayments, a budget proposal showed on Friday.
Pemex has debt payments of nearly $9 billion coming due on bonds next year, part of its $97.3 billion in financial liabilities. Ratings agencies have long criticized the firm for its reliance on government support to shore up its finances.
President Claudia Sheinbaum, who took office in October, has said that her government will continue to support Pemex and state-owned electric utility CFE (EBR:CFEB) because of the key role they play.
The transfer to Pemex is dependent on the company improving its balance sheet by the same amount, according to the budget proposal. Congress must now debate and vote on the bill.
Pemex has received around 150 billion pesos this year to meet its debt obligations.
Under the administration of Sheinbaum’s predecessor, President Andres Manuel Lopez Obrador, Pemex received billions of dollars to pay down its debt, boost oil output and build a refinery that is just starting to produce fuel.
($1 = 20.3310 Mexican pesos)