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Mexico's Pemex sets up credit lines to pay providers
March 9, 2016 / 2:51 AM / 2 years ago

Mexico's Pemex sets up credit lines to pay providers

MEXICO CITY, March 8 (Reuters) - State-run oil company Pemex said on Tuesday it had set up lines of credit with Mexico’s development bank to start paying back billions of dollars in debt to suppliers, as the firm seeks to repair finances hit by a rout in crude prices.

Pemex has deferred payments to dozens of suppliers and contractors since last year, racking up some 147 billion Mexican pesos ($8.2 billion) in debt by the end of 2015. So far, it has paid back 20 billion pesos.

The lines of credit will help the company repay debts to more than 1,300 suppliers, which represent 85 percent of those owed, Pemex said.

Last month, Pemex said it would put billions of dollars worth of projects on hold because of slumping oil prices, which is likely to curb production by about 100,000 barrels a day. In January, the firm produced 2.26 million bpd.

$1 = 17.9352 Mexican pesos Reporting by Adriana Barrera; Editing by Peter Cooney

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