AMLO Stares Down $36 Billion Bill for Pemex Debt Relief

  • CEO said Wednesday that government will pay company’s debt
  • But CFO sought to tamp down those expectations on Thursday
Andres Manuel Lopez ObradorPhotographer: Alejandro Cegarra/Bloomberg
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Mexico’s President Andres Manuel Lopez Obrador may be poised to foot a titanic bill for the world’s most-indebted oil producer.

Petroleos Mexicanos Chief Executive Officer Octavio Romero told lawmakers Wednesday that the federal government will take over its bond payments, fueling a rally in notes from the beleaguered company. Payments could total $36 billion if the government takes on all the debt coming due by the time Lopez Obrador’s term expires in September 2024, according to data compiled by Bloomberg.