Business World Online
Posted on June 05, 2012 11:13:45 PM
THE GOVERNMENT may just lend money to Power Sector Assets and Liabilities Management Corp. (PSALM) instead of borrowing in behalf of the state-owned firm, the national treasurer yesterday said.
"We are looking at funding it through our regular borrowing activities so it will be included in our regular auctions. We can either increase or adjust in our regular Treasury bond auctions," National Treasurer Roberto B. Tan told reporters after a T-bond auction.
"We might no longer conduct a special auction to raise funds for PSALM, we might just lend through the Treasury’s existing funds given our good cash position," he added.
The government posted a fiscal surplus of P31.024 billion last month, slashing the budget deficit in the four months to April to P2.885 billion.
PSALM needs some P75-80 billion this year.
Last month, Mr. Tan said the government was looking at conducting a second tranche later in the year to follow an offering scheduled for June.
This time, since the government will likely no longer conduct an auction dedicated to PSALM, he said "the Treasury can release the funds anytime".
"[W]e have made advances, around P7-8 billion was given in May to PSALM," Mr. Tan added.
PSALM President Emmanuel R. Ledesma, Jr., in a text message, yesterday said: "Although PSALM has requested for national government relending, it is not privy to the final form that will be undertaken by the DoF (Department of Finance) and the Bureau of the Treasury for the fund raising of PSALM’s requirements."
PSALM is mandated by the Electric Power Industry Reform Act of 2001 to handle the disposition of the state’s power assets. -- A. R. R. Gregorio source
"We might no longer conduct a special auction to raise funds for PSALM, we might just lend through the Treasury’s existing funds given our good cash position," he added.
The government posted a fiscal surplus of P31.024 billion last month, slashing the budget deficit in the four months to April to P2.885 billion.
PSALM needs some P75-80 billion this year.
Last month, Mr. Tan said the government was looking at conducting a second tranche later in the year to follow an offering scheduled for June.
This time, since the government will likely no longer conduct an auction dedicated to PSALM, he said "the Treasury can release the funds anytime".
"[W]e have made advances, around P7-8 billion was given in May to PSALM," Mr. Tan added.
PSALM President Emmanuel R. Ledesma, Jr., in a text message, yesterday said: "Although PSALM has requested for national government relending, it is not privy to the final form that will be undertaken by the DoF (Department of Finance) and the Bureau of the Treasury for the fund raising of PSALM’s requirements."
PSALM is mandated by the Electric Power Industry Reform Act of 2001 to handle the disposition of the state’s power assets. -- A. R. R. Gregorio source
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