Pemex says it has lines of credit to pay 1,300 vendors

Pemex solvent, but has liquidity problem: Director

Pemex
In February, Pemex announced it was slashing spending by 22 per cent and cutting unprofitable production by 100,000 barrels per day.  

MEXICO CITY _ Mexican state-run oil company Petroleos Mexicanos says it has obtained lines of credit allowing it to pay 85 per cent of its vendors, more than 1,300 businesses.

In a statement released Tuesday, the company said that at the close of 2015 it had debt of $8.4 billion of which it has paid about $1.1 billion.

Company director Jose Antonio Gonzalez Anaya met with the heads of business organizations Monday, explaining that Pemex was experiencing a liquidity problem but was solvent.

In February, Pemex announced it would slash spending 22 per cent and cut unprofitable production 100,000 barrels per day. It will cut $5.5 billion from its 2016 budget because of low world oil prices.

Mexico had estimated that the price of oil in 2016 would be $50, but it is now forecast at $25.

The Canadian Press