Exporters will have to wait a little longer for the “most awaited” release of the P280 million Export Development Fund (EDF), as bureaucratic red tape comes into play hampering the funds’ much anticipated release.
In an interview with Export Development Council (EDC) private sector representative Alan Suarez, he said that although the P280 million is already in the hands of EDC, releasing of funds to recipients may take longer as the Commission on Audit has imposed stringent rules for its release.
In fact, applications have already surpassed the allocated funds of P280 million, however, a mandate has it that fund releases to any export oriented organization must go through the COA process.
Earlier EDC trustee Luis S. Sicat announced EDC will be releasing about P9 million to Cebu-based export organizations, as part of the EDF or Export Promotion Fund (EPF), a facility offered by the government to aid exporters.
Sicat said that the Cebu Furniture Industry Foundation Inc. (CFIF) and the Fashion Accessories Manufacturers and Exporters (FAME), will get P5 million and P4 million respectively soon, as their applications were recently approved by the council.
The EDF is a special monetary support facility, initiated by the Bangko Sentral Ng Pilipinas (BSP) for exporters to sustain their operations, amid the rising value of the peso against the US dollar.
The P280 million fresh funds for exporters is sourced out from different government agencies that contributed to the availability of the fund, such as Department of Budget (P100 million), DTI (P100 million), and other agencies like the National Economic and Development Authority (NEDA), Bangko Sentral Ng Pilipinas.
The EDC is tasked to distribute the funds to the export organizations to finance international promotion campaigns.
However, despite the approval from the EDC, Suarez said the money can not be released easily, as it is due for a difficult COA processing.
“I’m pushing them to give it out already. Although a little too late to aid the bleeding exporters, any help at this time of survival would be good,” Suarez said.
Suarez, who is also the trustee for furniture in the PhilExport national and former president of PhilExport-Cebu, said that he is trying to convince the government to release the funds to the beneficiaries already and avoid a very meticulous process.
“Its fund has become quite complicated now, especially that EDC has received more and more applications from various export related organizations,” Suarez said.
The government, through the BSP had announced the availability of the fund early last year. However, more than a year ago, exporters are still waiting for this small help, that was purposely done to aid the hardly-breathing export players.
Other export related organizations in Cebu that have already submitted their application included; Gifts, Toys and Housewares (GTH), Seaweed Industry Association of the Philippines (SIAP), among others.