THE government may undertake fresh borrowing to settle the maturing debts of state-owned National Power Corp. (Napocor). Energy Secretary Jose Ibazeta said state-run Power Sector Assets and Liabilities Management Corp. (Psalm) may tap banks for another $1 billion to settle or refinance Napocor’s maturing obligations.
“I think at the moment, they’re still continuing their liability management. I’m sure even after June 30 they will pursue it. What I know is that it will be bank financing but I don’t know when,” he said, referring to Psalm.
He said PSALM is prepared “any time and any day” to proceed with the proposed borrowing depending on market conditions.
Under the Electric Power Industry Reform Act of 2001, PSALM is mandated to privatize the assets and handle the liabilities of Napocor. Proceeds from the privatization will be used to settle the latter’s obligations.
PSALM’s borrowings will be paid through the universal charge—a tariff imposed on all electricity consumers—and from the sale of Napocor’s assets.
At end-December, Napocor’s outstanding debt stood at $16.5 billion, 40 percent of which is set to mature starting this year until 2014.
Ibazeta had said PSALM has yet to identify how much of Napocor’s remaining obligations would be refinanced within the year.
But for 2010, Napocor has around $3-billion worth of maturing loans.
Ma. Luz Caminero, PSALM president and chief executive officer, earlier said it has already raised money to settle a third of maturing obligations this year through a recent bond issuance.
Napocor’s debts had been the single-biggest drag on the national government’s finances, as these liabilities enjoy a sovereign guarantee.
The national government has been running a budget deficit since the Asian financial crisis of a decade ago.
For this year, the government has programmed a fiscal gap of nearly P300 billion.
Besides assuming the debt payments of state-owned firms like Napocor, the government has incurred tax collection shortfalls, forcing it to borrow both here and abroad to meet spending targets. –EUAN PAULO C. AÑONUEVO REPORTER, Manila times
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
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Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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October –
Monthly Observances:
Industry and Commerce Safety Month
National Statistics Month
Local Government Month
Consumer Welfare Month
Cooperative Month
National Quality and Productivity Improvement Month
National Health and Wellness Tourism Month
National Indigenous Peoples Month
Weekly Observances:
Week 1: Elderly Filipino Week
Week 2: National Health Education Week
Local Government Week
National Mental Health Week
October 17-23:
National Week for Overcoming Extreme Poverty
October 18 – 24:
United Nations Week
Last Week:
Nurses’ Week
Consumers’ Protection Week
Week of the 4th Sunday:
Barrio Farmers’ Week
Daily Observances:
First Monday (Oct 4): Universal Children’s Day i
n the Philippines
Oct 5: National Teachers’ Day
Oct 10: Local Government Day
Third Thursday (Oct 14): Conflict Resolution Day
Oct 21: Tenants’ Emancipation day
Oct 24: United Nations Day
Oct 29: National Indigenous People’s Thanksgiving Day
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