EXPORTERS will have to be more patient and try to get by with what they have as red tape has delayed the release of some P280 million in financial assistance from government, a member of the Export Development Council (EDC) said.
EDC private sector representative Allan Suarez said that while the P280-million export development fund is already with the EDC, its releases may take longer due to “stringent rules” imposed by the Commission on Audit.
With so many exporters hobbled by the effects of a weakened US market and a strong peso, Suarez said applications from export organizations that want to avail themselves of the export development fund have surpassed P280 million.
The export development fund is a special monetary support facility established by the Bangko Sentral ng Pilipinas (BSP) to help exporters expand their market reach abroad.
“I’m pushing them to give it out already. Although it is a little too late to aid the bleeding exporters, any help at this time would be good,” Suarez said.
Suarez, who is also the trustee for furniture in the Philippine Exporters Confederation (Philexport) and former president of Philexport-Cebu, said that as a member of the EDC, he will try to convince the government to release the export fund to beneficiaries and “avoid a very detailed process.”
“It has become quite complicated now, especially as the EDC has received more and more applications from various export-related organizations,” he said.
Crucial
Economists expect the country’s exports to decline significantly by year-end due to the slowdown of the United States economy and the continued appreciation of the peso against the dollar.
This is why, Suarez said, the export development fund will be crucial in sustaining the growth of the “surviving” export players and help the export sector participate in international trade fairs and road shows to lure new buyers from alternative markets, like Europe, Middle East and Africa.
Earlier, EDC trustee Luis Sicat announced that the EDC has agreed to release loans totaling P9 million, as part of the Export Promotion Fund (EPF), which was established by the government also to help exporters.
The Cebu Furniture Industries Foundation Inc. and the Fashion Accessories Manufacturers and Exporters Cebu will be receiving loans of P5 million and P4 million, respectively, Sicat said.
Other export related organizations in Cebu that have already submitted their application for the export development fund include the Cebu Gifts, Toys and Housewares Manufacturers and Exporters Association and the Seaweed Industry Association of the Philippines.
The P280-million export development fund for exporters was taken from the contributions of different government agencies, such as the Department of Budget and Management (P100 million), Department of Trade and Industry (P100 million), National Economic and Development Authority and the BSP, among others. (MMM)
