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Monday, August 15, 2005
Philexim gives guarantees for loans
THE government-owned Philippine Export-Import Credit Agency (Philexim) extended in the first half of this year guarantees for the P13 million in loans granted to two Cebu-based companies.
The companies, Pan Arts Corp., a fashion accessories firm, and E & B Industries, a furniture manufacturer, took the loans from Rizal Commercial Banking Corp.
“Our primary function is to give guarantees (a substitute to collateral) to the loans made by small and large businesses to banks. We also give direct loans through the Sulong (Small and Medium Enterprises or SME Lending Opportunities for National Growth) program for those who can’t avail (themselves) of loans from banks,” said Philexim Cebu office head Alex Arabis.
Philexim provides a maximum of 90 percent guarantee to banks for loans made by SMEs while it gives 100 percent guarantee for loans made by large enterprises.
Support
Its Sulong program is a unified lending program for SMEs designed to support the National SME Development Plan of the Arroyo administration.
Some P33 million is also available for five more exporters included in Philexim’s list of prospects who may avail themselves of guarantees and direct lending programs this year.
Formerly known as the Trade and Investment Development Corp. of the Philippines or Tidcorp, Philexim has granted a total of over P72.8 million for its guarantee and direct loan programs (that ranges from P1.5 million up to P25 million) to its 12 existing accounts, composed of SMEs in Cebu from 2004 up to this year.
“Ninety percent of them are from the furniture industry,” Arabis said.
The P380-million loan of Hilton Cebu Resort and Spa is one of Philexim’s existing large accounts, he added.
“We are also now in the final stage of processing a total of P35 million guarantee and direct loans to six accounts (SMEs). Our target is to grant approval on these applications by the end of next month,” he told Sun.Star Cebu.
Arabis said P20 million of a total of P35 million for guarantees and direct loans that they will extend next month is allocated for Nozomi Fortune Services, Inc., a Cebu manpower company that services Mactan Economic Zone locators. It is the first time Philexim received an application from such business.
Assistance
Aside from providing assistance to SMEs and large enterprises, Philexim also extends help to government priority projects in the areas of information and communication technology, tourism and infrastructure, he added.
Arabis said the government has a lot of programs and financial assistance to help small and large businesses in the country.
He admitted, however, that only a few could or have the will to avail themselves of the said programs due to intensive documentation procedures and requirements that serve as the most common hindrances.
“Most businessmen don’t have time to process their applications because they are busy with their respective businesses. Others have interest to apply, but they just don’t know how. Many don’t even know how to write and present their need,” Arabis said.
He said there has to be somebody or an agency with technical knowledge that should fill the gap to assist, especially the SMEs, in processing their applications so that the government’s programs would really serve their purpose.
Philexim reactivated its operation in March this year after it slowed down on its guarantee and direct lending programs last year due to the “restructuring” of its management and focus of programs. ALC
(August 15, 2005 issue)
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