LIMA, Sept 14 (Askume) – Peru’s government said on Saturday it had approved a total of $1.75 billion in financing for troubled state oil company Petroperu to help the company deal with rising debt and dwindling cash.
The boards of Peruvian oil companies resigned this month after Prime Minister Gustavo Adrianson called for “drastic measures” over issues including financial instability at the companies .
The measures announced in a government order on Saturday include short-term credit lines of up to $1 billion and “temporary financial support” of $750 million.
“The purpose of this emergency decree is to adopt much-needed economic and financial measures to overcome the financial situation of Petroperu,” the decree said.
The government has also called on the Ministry of Economy to take over Petroperu’s debt payments due in the second half of 2024, including bonds and loans intended to finance the modernization of the Talara refinery.
Petroperu is the country’s main fuel supplier and says it needs at least $2.5 billion to continue operating.
