The Mexican authorities will suggest a further tax discount for closely indebted state oil firm Pemex [PEMEXF.UL] within the nation’s 2020 price range, President Andres Manuel Lopez Obrador mentioned Thursday, the most recent measure to strengthen the corporate.
Lopez Obrador has pledged to revive Pemex, whose $106 billion debt is the biggest for any oil firm on the planet. In June, Fitch downgraded to ‘junk’ the debt score of the corporate, whose oil output has declined by about half over the previous 14 years, inflicting its bonds to tank.
“We wish to decrease Pemex’s tax burden, we’re assessing it now. We already did, however now that we’re creating subsequent 12 months’s price range, we are able to set up the measure,” Lopez Obrador mentioned.
The announcement comes two days after the stormy resignation of Mexico’s former finance minister Carlos Urzua, which shook the financial system and left the state oil firm within the fingers of his successor and former deputy Arturo Herrera.