PEMEX looks to refinance and pay down its debt

The Mexican state-owned petroleum company Pemex is looking to refinance its huge debt while interest rates are at historic levels, that’s according to Mexican officials from the Mexican Oil Company. During one of the many morning press meetings the Mexican President, AMLO also made it clear that the Oil Giant was in talks to refinance the debt, The President also said no further details were going to be released about the Debt Refinance as talks are ongoing.

Currently, Pemex has $115 billion in debt, The Mexican Government has said in the past it would not allow the State company to default, as it is an extension of the Mexican Government. The Government under AMLO also has given the company tax relief in order to help the company balance its budget and avoid any potential defaults.

One option the Mexican GOV is looking into is using the country’s IMF funds to help pay down debt. The president of Mexico alluded to the recent allocation to Mexico of over $12 billion in special drawing rights (SDRs) from the IMF