Mexico's government today announced plans to provide USD 4.2 billion in liquidity to struggling state-run energy firm Pemex, which has posted huge losses amid crumbling production and oil prices.
The finance ministry said Pemex will receive a capital injection of USD 1.5 billion and a credit facility of USD 2.7 billion to cover pension costs this year.
The announcement follows the company's decision in February to cut USD 5.5 billion from its budget, in large part by delaying costly projects.
"Pemex has historically been a fundamental institution for the Mexican economy and the nation's public finances," the finance ministry said in a statement.
"However, the unfavorable economic conditions that the hydrocarbon sector is going through at the international level and the depletion of various (oil) fields have weakened Pemex's financial situation," it said.
