State-run Power Sector Assets and Liabilities Management Corp. said Wednesday it trimmed its financial obligations by 9.5 percent to P381.908 billion in 2020 from P422.01 billion in 2019.
PSALM said in a report to Finance Secretary Carlos Dominguez that it reduced its principal financial obligations by P40.103 billion last year, or more than the target of P10.184-billion reduction for the year.
The agency, which manages the assets and liabilities of National Power Corp. under the Electric Power Industry Reform Act of 2001, said it also paid all interests and borrowing costs that matured in 2020 amounting to P11.56 billion.
PSALM said it was also able to lower the average interest rate on borrowings to 4.17 percent p.a. at the end of 2020 from the average of 5.07 percent p.a. at the end of 2019.
PSALM said it also adjusted its currency mix by borrowing in peso while paying foreign currency obligations to lower the ratio of foreign currency obligations and mitigate foreign exchange risks.