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LatAmOil: Mexican government offers support to Pemex

Mexico’s government is offering additional fiscal support to Pemex, the national oil company (NOC), in the form of a stimulus package that includes around $3.5bn in tax breaks and a capital boost of $1.3-1.6bn. Its plan complements a set of earlier concessions designed to reduce Pemex’s profit-sharing duties in 2020 and 2021.

News of the stimulus helped the company’s euro- and dollar-denominated bonds gain momentum last week. In related news, market experts told Bloomberg that they expected the Mexican government to continue supporting Pemex despite its massive debt load.