Mexico Boosts Pemex with $6.7B Cash Transfer

The Mexican government has announced plans to simplify the tax system for state oil company Pemex by consolidating three taxes into one, aiming to enhance transparency and investment capacity amidst heavy debt burdens. President Claudia Sheinbaum's administration is committed to supporting Pemex, proposing a 136 billion peso ($6.7 billion) cash transfer to cover 2025 debt payments, alongside an austerity drive targeting inefficiencies. This financial aid is part of a broader strategy to improve Pemex's balance sheet and address nearly $100 billion in financial liabilities without resorting to capital markets. The government also plans to narrow its fiscal deficit to 3.9% of GDP in 2025 while maintaining support for Pemex and social programs. These measures reflect ongoing efforts to stabilize Pemex, which is heavily reliant on government backing, and to potentially refinance its debt in the future if needed.