PSALM cuts debts, receivables

By Chino S. Leyco – March 14, 2020, 10:00 PM
from Manila Bulletin

The Power Sector Assets and Liabilities Management Corp. (PSALM) was able to cut its financial obligations last year and at the same time collected revenues and its receivables amid efficient implementation of its liability management strategies.

In a report to Finance Secretary and PSALM Chairman Carlos G. Dominguez III, the state-owned firm said it raised ₱94.55 billion in revenues and receivables in 2019, while its financial obligations declined to ₱15.23 billion.

According to PSALM, revenues came from privatization proceeds, power sales, collections from delinquent and overdue accounts, and proceeds from the Universal Charges (UCs).

“Its collection efficiency of 93.5 percent in 2019 for current power sales enabled this firm to collect ₱11.76 billion from its power customers,” Irene Joy Besido-Garcia, PSALM president said in her report.

Garcia said PSALM was able to collect ₱4.32 billion in overdue and delinquent accounts by offering borrowers flexible payment schemes through restructuring agreements or special payment agreements.

This collection surpassed PSALM’s target of ₱4.12 billion. “These flexible payment schemes encouraged entities and electric cooperatives to viably settle their outstanding obligations,” Garcia said.