SAO PAULO, Aug 14 (Reuters) - State-controlled Petróleo Brasileiro SA agreed on Friday to refinance an outstanding 6 billion reais ($1.7 billion) tax debt with the Brazilian government, allowing the debt-laden oil producer to restructure an onerous liability.
Under terms of the plan, the company commonly known as Petrobras will have the debt cut by half, and use tax credits to write down 876 million reais of the remaining amount. The company will use 1.26 billion reais from a judicial cash escrow account to pay part of the debt. The remainder will be paid in installments between this year and 2017, according to a securities filing.
$1 = 3.5102 Brazilian reais Reporting by Guillermo Parra-Bernal Editing by W Simon