MEXICO CITY, Feb. 15 (Xinhua) -- The Mexican government said Friday that it will provide 107 billion pesos (5.2 billion U.S. dollars) to help the state-run Petroleos Mexicanos (Pemex) improve its financial condition.
During a press conference, Mexican President Andres Manuel Lopez Obrador said that the plan would "lift a fiscal burden" off the country's most important company.
"This incentive that has been given to us for this year will be cumulative over the six-year period. In other words, it is 15 billion pesos (780 million dollars) this year and in 2020 this incentive could reach 30 billion pesos (1.6 billion dollars) and so on," said Alberto Velazquez, Pemex's director of finance.
Thanks to this plan, Pemex would "for the first time" enter the market with no new debt, Velazquez said.
Meanwhile, Finance Minister Carlos Urzua said the additional capital injection in the current fiscal year will allow Pemex to increase investment by 36 percent compared to the year 2018.
"Pemex will be fully supported by this government and if more is needed to fund it, we will do it. The objective is for Pemex to put all its finances in order," Urzua said.