Mexico's Pemex gets refinancing worth $8 billion

1 photo
Save Story

Estimated read time: Less than a minute

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

MEXICO CITY (AP) — Mexico's heavily indebted state-owned oil company has won about $8 billion in refinancing and extended lines of credit from three private banks.

Petroleos Mexicanos needed the refinancing to handle a debt that currently totals over $100 billion.

Experts believe the company known as Pemex is technically insolvent, but its debt is backed by the Mexican government. President Andrés Manuel López Obrador has promised to rescue the firm.

Japan's Mizuho, Britain's HSBC, and the U.S. bank JP Morgan committed Monday to refinancing $2.5 billion in debt and extending revolving credit lines worth $5.5 billion.

The government also announced it will lower Pemex's tax and transfer payments by about $1.5 billion, which it hopes will the company to invest in exploration and production.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Most recent Business stories

Related topics

The Associated Press


    Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the Trending 5.
    By subscribing, you acknowledge and agree to's Terms of Use and Privacy Policy.

    KSL Weather Forecast