Mexico significantly reduces Pemex debt support by nearly 70%, expects to achieve a surplus by 2027

(1) The Mexican government plans to reduce its debt support for the state-owned oil company Pemex in 2027 to 81.1 billion pesos (approximately $4.8 billion), a significant cut of nearly 70% compared to the 263.5 billion pesos budgeted in 2026. (2) According to the 2027 budget proposal submitted by President Sheinbaum, the government expects Pemex to achieve a fiscal surplus of 95.1 billion pesos (around $5.6 billion) by then, providing grounds for the reduction in support. (3) Previously, Mexico had allocated $14 billion in capital for Pemex in the 2026 budget for debt repayment and completed a $10 billion buyback to settle maturing debt for that year; Pemex's debt maturing next year (2027) amounts to about $5 billion, meaning the reduced support is still expected to cover repayment needs.