Thursday, October 12, 2006 Philexim establishes loan facility for local exporters, subcontractors
MEMBERS of the Cebu-GTH (gifts, toys and houseware) Manufacturers and Exporters Association Inc. can now avail themselves of loans of up to P500,000 each.
This, as the government, through state-owned Philippine Export-Import Credit Agency (Philexim), approved a P25-million revolving credit line facility for the organization.
Virgilio Angelo, Philexim president and chief executive officer, said in a statement that the credit facility is part of Philexim’s Wholesale Financing Program, which is in line with the Arroyo administration’s thrust to provide more accessible credit and financing opportunities to small and medium enterprises (SMEs).
“No less than President Arroyo wanted the credit availability to be reached by a greater number of our SME groups, especially in the regional areas where growth and development must begin. With this facility, Philexim hopes to have answered the government’s call to assist the small and medium exporters, similar exporting associations, subcontractors and suppliers through more financing accessibility,” he said.
First
Cebu-GTH is the first organization to benefit from the program, which will be launched today at the Casino Español de Cebu.
The program is designed for associations, federations, chambers and cooperatives that are registered with the Securities and Exchange Commission.
In an interview, Cebu-GTH president Jenifer Cruz lauded Philexim for the program, saying this could be one of the answers the export industry expects in its call for the government to fulfill a promise to provide assistance to the sector other than controlling the appreciation of the peso.
The strengthening of the peso has had negative effects on the country’s exporters. Exporters claim that a strong peso makes Philippine products less competitive, in terms of price, in the international market.
In time
Cruz said Philexim’s program is “in time” to provide Cebu-GTH and its members the opportunity to grow and make their businesses more competitive.
“We thank Philexim for this partnership. Many of our members will be relieved and more importantly, assured that our collaboration with the government would yield productive results for us,” he said.
Angelo said the credit facility also aims to reduce the dependence of exporters on “opportunistic” financiers that charge prohibitive rates.
The Wholesale Financing program charges a three percent interest per month. This is low compared to the eight- to 10-percent monthly interest imposed by loan sharks, Cruz said.
Under the program, conduit associations can avail of a credit limit of up to P25 million or a minimum of P1 million. (JBN)
