Mexico Eyes Refinancing Plan for PEMEX's US$120 Billion Debt

Mexico's federal government is working to refinance PEMEX debt, which totals more than US$120 billion. The strategy involves leveraging credit lines from the World Bank and international financial institutions, including Deutsche Bank. These funds are primarily intended to pay PEMEX's suppliers.

As reported by El País, the initiative includes factoring schemes where banks would purchase PEMEX's debt at a discount, with backing from the Mexican government. For PEMEX's financial debt, discussions are focused on whether the Ministry of Finance will absorb a portion or continue with direct capitalizations. This year, PEMEX received a budgetary line of MX$136 billion (US$7.294 million) from the federal government to cover short-term liabilities.

PEMEX's total debt stood at US$101 billion as of March, with an additional nearly US$20 billion owed to suppliers. Luz Elena González, Minister of Energy; Edgar Amador, Minister of Finance; and Víctor Rodríguez, PEMEX Director, are working on this plan. PEMEX faces US$6.4 billion in short-term debt due in 2025, with a total of US$47.1 billion due by the end of the current administration.