The measure is taken in response to a double downgrade of the credit rating, which led The Mexican Government took measures to alleviate the financial burden of the state company Mexican oil (Pemex).
In response to a double credit rating downgrade by Moody’s Investors Service Last Friday, the Mexican Government took measures to alleviate the financial burden of the state company Mexican oil (Pemex).
In this context, the president Andrés Manuel López Obrador issued a decree this Tuesday, exempting Pemex from paying a series of taxesknown as DUC levies, for a four-month period spanning the fourth quarter and January.
This decision is presented as an effort to provide the indebted oil company with a significant injection of liquidity, facing the consequences of the recent downgrade of its credit rating by Moody’s. The agency warned that Pemex could face difficulties in a debt exchange without continued government support.
The tax exemption announced by President López Obrador represents the latest measure of support for Pemex, a strategy that has been a central priority of his government, which comes to an end this year.
Pemex’s debt
Pemex’s debt has seen a considerable increase since last year, when President AMLO allocated an unprecedented amount of 145,000 million Mexican pesoss (approximately $8.5 billion) in the fiscal budget to help the company meet its debt obligations.
This capital injection came on top of years of ad hoc interventions and tax breaks aimed at supporting the company. The 2024 budget has also further reduced DUC levies, thus seeking to alleviate financial pressure on Pemex.
Source: Ambito
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