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Pemex is set to receive a budget allocation from the Mexican government for its amortization payments in 2024 totaling about $11bn, as per sources citing a draft budget. They added that the inclusion of Pemex’s maturing debt is an effort to ease concerns about the oil company’s finances. John Padilla, MD at IPD Latin America said, “This isn’t going away, it’s a temporary relief measure… they don’t want that as an overhang going into the elections. But this only creates more complications for the future administration”. The news is in-line with Pemex’s CEO Octavio Romero’s comments in July, which stated that Mexico will refinance the company’s debt. A few days later, Pemex received MXN 64.9bn ($3.8bn) from the government in order to meet some debt obligations. While the government is expected to help Pemex, some analysts believe that they may not allocate more than half of the money Pemex owes to its creditors in 2024. Pemex’s is the most indebted oil company in the world with a $110.5bn debtpile as of end-June.
Pemex’s dollar bonds were trading stable with its 6.5% 2027s at 87.8, yielding 10.8%.
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