Peru government eyes more financing for battered state-owned Petroperu

Peru's government said Thursday it is considering new financial support for state-owned Petroperu, as the firm's liquidity problems prompted a loss of its investment grade rating in 2022 and have led to constant changes on its board of directors.


Reuters | Lima | Updated: 12-01-2024 03:23 IST | Created: 12-01-2024 03:21 IST
Peru government eyes more financing for battered state-owned Petroperu
Representative Image Image Credit: ANI
  • Country:
  • Peru

Peru's government said Thursday it is considering new financial support for state-owned Petroperu, as the firm's liquidity problems prompted a loss of its investment grade rating in 2022 and have led to constant changes on its board of directors. The financial aid "is a decision that has to be made by the Committee of Ministers, and we will evaluate all possible scenarios," economy minister and Petroperu board member Alex Contreras told journalists. "The decision and details will be announced next week," he added.

Contreras said Peru's fiscal stability would be top of mind in making the financing decision. Petroperu's chairman told Reuters last year that the firm was evaluating a $1.2 billion financing plan, that included the possibility of bonds and credit lines, if the company faced cash flow problems.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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