Home »Fuel and Energy » World » Mexican president moots $1.5 billion rescue plan for Pemex
Mexican President Andres Manuel Lopez Obrador said Friday he would soon announce a rescue plan for troubled state oil company Pemex, suggesting it would be worth around $1.5 billion. Pemex is struggling under the weight of more than $100 billion in debt and years of declining production, and was recently downgraded by ratings company Fitch.

Trying to shore up the firm, Lopez Obrador's government has announced a series of tax breaks for Pemex - and will now announce further measures next week, the leftist leader said. "The decision has already been made. We are going to strengthen Pemex, to rescue Pemex, to make it solvent," he told a press conference.

He said the plan would include further reducing the company's fiscal burden, and did not rule out a cash injection. As of Thursday, the total amount of rescue money under discussion was "around $1.5 billion," he added. In its downgrade note, Fitch estimated Pemex needed an additional $9 billion to $14 billion annually to get back on its feet.

Copyright Agence France-Presse, 2019


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