Mexico FinMin expects Pemex in a position to deal with 2023 debt amortizations, authorities there if wanted

MERIDA, Mexico, March 17 (Reuters) – Mexican Finance Minister Rogelio Ramirez De La O mentioned on Friday he expects state oil agency Petroleos Mexicanos, recognized domestically as Pemex, to have the ability to deal with its debt amortizations in 2023, although reaffirmed that the federal government could be there if wanted.

With its monetary debt totaling almost $108 billion on the shut of final yr, Pemex should pay down some $8.2 billion expiring this yr and one other $9 billion extra in 2024 in each bonds and long-term financial institution loans, placing it in a difficult monetary place.

Pemex chief government Octavio Romero mentioned in an interview final week that the corporate is exploring all choices, including that they’d not dominated out the potential of providing potential lenders ensures backed by crude oil.

“In 2023, we expect (Pemex) to have the ability to handle its debt amortizations and we’re going to be behind it in case it’s required,” Ramirez de la O mentioned at a press convention on the sidelines of Mexico’s annual banking conference within the southern metropolis of Merida.

The finance minister’s newest feedback got here after Mexico’s President Andres Manuel Lopez Obrador mentioned in January the federal government would supply additional assist to Pemex to make sure it meets its debt repayments.

The federal government lifeline has supplied the corporate with some $45 billion between capital injections and tax advantages during the last 4 years.

Reporting by Noe Torres; Enhancing by Anthony Esposito

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