Broke WUC breaches P140m loan deal again
Friday, October 13, 2017
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.
The Ministry of Agriculture, local producers, retailers, and industry associations must work together to overcome the obstacles hindering vegetable production and distribution.This collaborative approach is essential to improve the availability, quality, and affordability of vegetables in the market.Firstly, the Ministry of Agriculture should provide support and guidance to local farmers to enhance their productivity and efficiency. This could...