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Accrued expenses and other liabilities:
These accounts reflect interest to be paid for long term
financing through the issuance of bonds from the
Corporación Andina de Fomento (CAF) and Scotiabank,
the short-term credit lines to finance fuel purchases, as
well as compensation for vacation, legal severance pay
and school bonus.
Other important
long-term liability
worth
mentioning is the long-term debt: Includes liabilities
with Corporación Andina de Fomento (CAF) and
Scotiabank. In general terms, liabilities decreased ¢1,450
million, in part because the total credit line with Instituto
de Crédito Oficial (ICO) was paid upon expiration on July
of 2013.
Long-term payable bonds:
This item was
created at the end of December of the year 2012, with the
first issuance of bonds performed by RECOPE at the end
of that year. On themonth of April 2013, the second set of
bonds was issued. Both totaled $50 million, the first with
a ten-year term and the second with a fifteen-year term.
In total, $200 million bonds are expected to be placed
in the stock market to finance several investment
projects for the company. For 2013, liabilities totaled
¢50,667 million.
Income tax:
This term presents an
important amount to issue an extraordinary payment
to the Tax Authorities, for the 2009-2010 income tax
arising from a ruling issued after a review performed
by the Tax Auditors. The amount regarding this tax
totaled ¢18,236 million for principal, plus interests
generated to the effective payment date, as a result
of a tax audit for these years, which presented a
discrepancy between tax laws and tariffs, notified on
May 14, 2013 during a preliminary hearing requesting
the RECOPE addressed this situation. Months later,
a settlement was reached and 50% of the amount
was paid, with the remaining balance to be paid
throughout 24 months, starting in August 2013.
Payments by RECOPE by the end of the 2013 term
totaled ¢7,218 million for principal and ¢6,933 million
in interests, for a grand total of ¢14,151 million and a
remaining balance in principal of ¢7,218.
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Annual Report 2013 www.recope.com