Romanian state-controlled hydropower producer Hidroelectrica has paid all its debts in the short term. Moreover, the company started making profit from interest, according to the latest report of Euro Insol, the insolvency administrator of the company which is still insolvent.
More precisely, at the end-March, Hidroelectrica has fully paid short-term financial debt which at the time of entry into insolvency in June 2012, amounted to RON 813 million.
During 2012- 2016 period, the significant reduction of financial debt, representing credit lines and investment loans, along with the increase of its own monetary funds, led to profit from interest: annual loss of RON 114 million, which turned into an annual profit of RON 4 million (March 2016).
According to market sources, Hidroelectrica gets interest on deposits of more than 1.7 percent per month.
Also, the significant drop of the financial debt in 2012-2016 period has encouraged diminishing the exposure to currency risk, as reflected in transforming the annual loss of RON 60 million from exchange rate differences in an annual earn of RON 5 million (March 2016).
In late March, the only debts the company had were represented by credit facilities maturing in April 1, 2016 – September 15, 2021 period.
Hidroelectrica could come out of insolvency on June 8, when the Court might decide on the appeal lodged by the Energy Holding trader.