Updated July 6, 2018, 12:17 AM By Myrna M.
Velasco
Amid the falling value of the
Philippine peso and continued snag on its privatization of power assets, Power
Sector Assets and Liabilities Management Corporation (PSALM) was able to cut
its liabilities by more than P40 billion last year to P466.1 billion from a
heftier level of P506.3 billion in 2016.
At the very least, that will be
several billions less of headaches to Finance Secretary and PSALM Board
Chairman Carlos G. Dominguez III who to some extent is like champing at the bit
into wiping out the state-run firm’s liabilities within the tenure of the Duterte
administration.
“Through the efforts of PSALM is
continuously implementing its liability management program and strategies,
PSALM’s financial obligations were reduced to P466 billion or US$9.3 billion as
of fourth quarter 2017,” the company noted.
It is worth noting that bulk of
PSALM’s long-term loans had been denominated in US dollars, hence, the
depreciating value of the Philippine currency had been making dent on its
financial liability management strategy.
As of end-December last year, the
state-run firm indicated that total debts were still at P263.31 billion or
US$5.27 billion, down by P12.2 billion from P275.4 billion in 2016.
On its lease obligations with
independent power producers (IPPs), the company was able to slash it by a
substantial P28.1 billion to P202.8 billion from the year-ago level of P230.9
billion.
Dollar-denominated loans account for
the lion’s share of 50.52 percent as to its remaining debts. That amounted to
US$2.664 billion or P133.028 billion as of end last year.
Loans in Philippine
peso-denomination amounted to P102.955 billion or 39.12-percent; while
Japanese-yen debts hovered at P27.280 billion, which had 10.36-percent fraction
in the pie.
As part of its liability management
scheme, PSALM has likewise been calculating steps on how it can continually
divest the remaining power assets of the National Power Corporation so it can
fetch additional proceeds that can aid it in expunging its monstrous
obligations.
The new management of the
state-owned firm though has yet to announce as to which assets will be
prioritized on the divestment milieu – aside from the option of selling the
Napocor complex which has already gotten the preliminary nod of the finance
department.
On top of proceeds from sale of
assets, the government has also been contemplating on utilizing the Malampaya
fund to partly retire PSALM’s outstanding financial obligations – that way,
consumers can already be spared from paying universal charges in their electric
bills.
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