THE Power Sector and Assets Liabilities Management Corporation (Psalm) is optimistic of reducing the existing loans of state-run National Power Corp. (Napocor).

Ferdinand Florendo, manager of Psalm, said that for the year 2009, they need to pay Napocor's debt worth US$1.5 billion, US$1.8 billion in 2010 and US$1.2 billion in 2011.

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The agency also needs to settle US$0.95 billion for Napocor's independent power producer’s obligations in 2009, US$0.73 billion in 2010 and US$0.73 billion in 2011.

This means that Psalm needs to pay a total of US$6.91 billion worth of loans of Napocor covering 2009 up to next year.

But Florendo said they already borrowed P30 billion this year to cover the remaining requirements of Napocor this year.

"Psalm borrowed US$2.2 billion to cover 2009 and part of 2010 maturities," Florendo told reporters.

Meantime, the official said Psalm already collected privatization proceeds of US$0.539 billion since June but they paid US$0.456 billion worth of debts and US$0.17 billion worth of IPP obligations.

From US$19.49 billion total loans of Napocor since 2004, Psalm was able to bring it down to US$16.35 billion. (MSN/Sunnex)