Puerto Rico electric utility pays off $300 million loaned by local government
Year-long loan was at a 5% interest rate
SAN JUAN – The Puerto Rico Electric Power Authority (Prepa) paid off a $300 million loan the central government had granted to the public corporation in February 2018 to inject liquidity to the public utility after the passage of hurricanes Irma and María.
Prepa Executive Director José Ortiz Vázquez confirmed that on March 8, the loan, which was crucial to provide stability to the power corporation while electric service was stabilized and cash flow restored, was paid.
Christian Sobrino Vega, the executive director of the Puerto Rico Fiscal Agency and Financial Advisory Authority (Aafaf) said the loan was key to providing short-term liquidity to Prepa at a time when the people of Puerto Rico were barely recovering from the impact of two hurricanes.
“At Aafaf, we will continue to work hand in hand with Prepa to preserve Prepa’s fiscal stability. For this reason, we will continue monitoring Prepa’s liquidity rigorously to protect the service it provides to the citizens,” Sobrino Vega said, adding that the disbursement did not affect the government’s long-term liquidity.
Prepa paid $9,050,000, or 5%, in interest.
Ortiz added that “Prepa is still facing financial challenges while it continues its transformation after commencing the Title III bankruptcy-like process under the Puerto Rico Oversight, Management, and Economic Stability Act.