Government-controlled financing institution, Philippine Export-Import Credit Agency (PhilExim) has reported a 21 percent increase of its guarantee issuances to P8.41 billion in a three year period.
PhilExim president and chief executive officer Virgilio R. Angelo reported that from September 2005 to September 2007, the agencies guarantee issuances to Small and Medium Enterprises (SMEs) has reached to P8.41 billion, from P6.94 billion three years ago.
In terms of volume of loan releases, SME-related industries benefiting from the lending mandate of PhilExim reached 52 percent higher in 2006.
Angelo explained that the market forces dominantly shaped the progress of PhilExim’s developmental and fiscal performance.
He said that as of September of this year, outstanding guarantees reached P9.66 billion, which allowed the Corporation more gearing ratio leverage for projected high-growth sectors of infrastructure, mining, business process outsourcing and power generation in 2007.
PhilExim’s Export Credit Issuance (ECI) on the other hand, grew to US$658.51 million in three years. He said that his developmental contribution of the agency is expected to grow further with more projects in the pipeline already well-positioned.
“PhilExim’s fiscal performance is making a balancing effect on its developmental pursuits. While at the outset, our financial position is affected by business cycle of industries,” he added.
The Corporation’s priority sector investments reached P8.41 billion from 2005 to September 2007, of which Angelo credited to accounts generated from the infrastructure, BPO, food processing, fertilizer export, electronics, water transport, tourism, agri-modernization, and power generation sectors.
He added in a statement that the financial performance of PhilExim is equated with the country’s business and market environment.
“For example, we were crucial in resuscitating the mining industry, by our guarantee of a US$100 million copper project, and with it, the subsequent growth of the industry in terms of job generation, tourism and export sales, among others,” he said.
He further reported that PhilExim’s cash inflows arising from its core businesses significantly improved by 40 percent as of September 2007, compared to the figure registered as of the same period of 2006.
Likewise, Angelo emphasized PhilExim’s role in job generation, saying that from 2005 to September of this year, the agency was either directly or indirectly responsible for generating almost 81,000 jobs and assisted a total of 246 SME, large and priority industries.
In Cebu, PhilExim is aggressively offering its guarantee and financial assistance products to the export industry, specifically its Wholesale Lending Program (WLP). – Ehda M. Dagooc