The Mexican government rolled out on Friday a plan to salvage its cash-strapped oil firm Pemex, which includes financial aid and debt cuts
MEXICO CITY (Pakistan Point News / Sputnik - 15th February, 2019) The Mexican government rolled out on Friday a plan to salvage its cash-strapped oil firm Pemex, which includes financial aid and debt cuts.The relief plan to inject the firm with an equivalent of $5.4 billion was presented at the morning press conference hosted by President Andres Manuel Lopez Obrador.
Pemex will be given a $1.3 billion recapitalization and a tax break worth $570 million as well as $1.8 billion in pension liability monetization. A clampdown on fuel theft will yield another $1.65 billion.
Pemex's financial director Alberto Velazquez Garcia estimated this year's investment in the state giant at nearly $15 billion, up 35 percent from the past year.
President Lopez Obrador blamed the company's huge debt burden on corruption after saying last month it was in the best shape in 30 years. Mexico plans to retain oil output at a daily 1.8 million barrels this year and raise it to 2 million barrels in 2020.
