by Myrna Velasco July
28, 2016
The Power Sector Assets
and Liabilities Management Corporation (PSALM) is preparing its cash hoard for
P18 billion worth of debt payments due next year.
According to PSALM
Officer-in-Charge Lourdes S. Alzona, the company is scheduled for bullet
payment next year for its P18 billion 2nd tranche of treasury bonds.
Bullet payment would
refer to the settlement of an entire amount of loan as it falls due – and this
could account for both the principal and interest charges.
Given such extent of
outstanding obligations expiring next year, PSALM has been batting for
immediate approval of its application of stranded debts recovery so it can
ready the cash for the scheduled payments.
“Considering that the
bond maturities are in bullet, the projected proceeds for said year will be
fully applied,” Alzona stressed.
The state-run firm that
is in-charge of the power sector’s privatization of assets and liability
management has been seeking regulatory approval for P28 billion worth of
stranded debts recovery so it can be primed in defraying maturing indebtedness.
Close to end of 2015,
PSALM reported that it paid roughly P52.55 billion of outstanding obligations,
comprising generally of debts and lease payments plus interest charges.
The company had
apprised media then that the debt component of the payments amounted to P19.53
billion; while interest charges had been at P13.27 billion.
Additionally, P19.75
billion had been earmarked for settlement of lease obligations; while another
P3.0 billion were for debt prepayments.
Liability management is
one area that PSALM is still struggling on, as assessments portend that up to
the close of its corporate life, it might still be saddled with stranded
liabilities.
The company still has
multitude of power assets for divestments – yet while proceeds may help trim
down financial obligations, it is seen that the total may not still be enough
to wipe out the residual debts of the privatized National Power Corporation.
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