Broke WUC breaches P140m loan deal again :: Mmegi Online

For the third year running, the Water Utilities Corporation (WUC) has breached the conditions of a 12.5 million Euro (P146 million) loan agreement with the European Investment Bank (EIB), raising a possibility of the loan being recalled.

According to the WUC’s financials for the year ended March 2017, the Corporation was again unable to maintain a debt service coverage ratio agreed to with the EIB when the loan was first made available nine years ago. The ratio measures an organisation’s ability to service its debt and the level of pressure on its cash-flow.

According to the WUC’s financials released yesterday, the Corporation owes the EIB P36.6 million from the original amount borrowed in 2008. A recall by the EIB would require the WUC to pay the outstanding amount immediately, instead of by 2023 as the original loan conditions state.

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Broke WUC breaches P140m loan deal again

For the third year running, the Water Utilities Corporation (WUC) has breached the conditions of a 12.5 million Euro (P146 million) loan agreement with the European Investment Bank (EIB), raising a possibility of the loan being recalled.

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