Saturday, September 15, 2007 Groups seek P12M loan
TWO industry associations under the umbrella group Confederation of Philippine Exporters (Philexport) Cebu have applied for a combined loan of P12 million under the government’s export fund.
The Fashion Accessory Manufacturers and Exporters (Fame) Cebu wants to borrow P5 million while the Cebu Furniture and Industries Foundation (CFIF) intends to apply for a P7 million loan from the P280 million seed fund for Philippine exporters that is managed by the Export Development Council (EDC).
“We (Philexport Cebu) will strongly endorse their proposal,” said Philexport Cebu advocacy officer Jun Abines, adding that Philexport will help CFIF and Fame get access to financial support.
Abines said at least five export organizations from Luzon have already availed of the export fund.
The P280 million fund for exporters is sourced from different government such as the Department of Budget, Department of Trade and Industry, National Economic and Development Authority, and the Bangko Sentral ng Pilipinas.
In a separate interview, CFIF advocacy officer Marlene Bedia said the organization is now awaiting EDC’s final decision after it submitted the proposal earlier this month.
Bedia is optimistic the CFIF will get EDC’s approval since the furniture industry belongs to the “chief revenue streams,” which include the country’s top 10 exports.
The EDC guidelines for the export fund state that products of the applicant must have high value-added or belong to what is called indigenous exports, using mainly locally-sourced raw materials. This disqualifies electronics, garments and oil and machine parts.
Bedia said the fund will be utilized for CFIF’s design program to enhance global design competitiveness in the global furniture industry as well as uphold Cebu’s position as the design destination of Asia.
A big part of the loan will be used for reference sourcing or the purchase of additional reading materials for the CFIF Information Center.
The CFIF proposal on the utilization of the loan includes tapping local and international designers to assist companies in enhancing product design.
“We started this program with the Cida (Canadian International Development Agency) and Pearl (Private Enterprise Accelerated Resource Linkages) 2 and we hope to continue this even if Pearl is ending,” Bedia said.
CFIF will also develop an internship program for industrial design students.
“We want them to be attracted to the furniture business,” said CFIF president Michael Basubas.
Bedia said the most important component of the proposal is the exploration for new raw materials that can be locally sourced.
Basubas said that after acquiring the P7 million fund, CFIF will continue to tap other funding mechanisms “but not necessarily limited to financial support.” (MMM)
