Lawmakers in Uruguay have approved a bill which will provide a more than $800 million aid package for the debt-burned Ancap, the state owned oil company and the country's largest corporation.

An Associated Press report published by US News mentioned that Uruguay's congress has decided to write off the company's debt amounting to $622 million and enabled a $250 million credit for the company provided by a regional development agency.

The said aid package has already been approved by the Senate to help the company recover.

Ancap, which is considered to be the major importer of oil in Uruguay and also has businesses in alcoholic beverages, cement and prefumes, has acquired losses amounting to about $170 million, mostly blamed on former President Jose Mujica's administration.

However, Mujica has defended himself and put the blame on the decisions made by Economy Minister Danilo Astori and his officials, as per the Associated Press.

Aside from this, the company's board has also blamed the fluctuations in the value of the Uruguayan currency and investment spending from 2010 to 2014 as other factors that led them to their debt-ridden state, Latino FoxNews said.

The same report noted that the legislation will now be forwarded to President Tabare Vazquez for promulgation.

According to Buenos Aires Herald, the bailout plan for Ancap is aimed at improving the equity situation of the company.

It noted that current estimates reveal that Ancap's debt has reached more than $800 million. Despite this fiscal crisis, the government has assured the managers of the company that they will be able to keep their jobs.

 It, however, noted that Ancap executives will be closely working with a team from the Economy and Finance ministry and the Planning and Budget office.

Meanwhile, El Pais reported that the bailout for the oil company was approved in the Senate, despite accusations of "concealment, corruption and ineptitude."

Senator Ope Pasquet mentioned in the same report that the senators decided to take action on the situation of the company, since the losses in 2014 were double compared to the 2013 figures.

He also noted that the Ancap situation is also happening "with many other public companies which we found out through investigating committees."

An earlier Reuters report revealed that the deficit of the company last year was at $324 million, but this number is expected to reduce to $200 million for 2016 with the help of the bailout plan the country made for Ancap.