State-owned utility company Fenaka Corporation Limited has made a major dent in its outstanding debt with USD 58.3 million in settlements in the past year.
In a booklet outlining the company’s achievements in the past year, Fenaka said it had USD 84.3 million in outstanding loans in November last year.
However, in 12 months, 23 percent of the total outstanding loans worth USD 19.5 million had been cleared in the past year, it said.
The most significant amount Fenaka has is payables for goods and services. As of November last year, USD 220.5 million was on its books as payables, out of which USD38.9 million had been cleared, amounting to 17.6 percent of total payables.
The company also said during the past year it had managed to shave off USD10.3 million from the company’s operational costs.
Fenaka said despite the major settlements and cost-cutting measures, the company remains in significant debt distress, with over 40 percent of its revenue spent on debt servicing.
Poor management and unnecessary staff recruitment in successive governments had compounded the company’s financial distress.