Exporters seek gov’t aid for easy financial access

CEBU, Philippines - Although the foreign exchange has continued to move in favor of the exporters, Cebu exporters are again calling on the government to help the export industry in its bid to thrive amid the long term global market fragility.

PhilExport-Cebu president Venus Genson said that unless the government and the banks will not ease financial access for export players, the industry is seen to lose its grip in the next couple of years.

Genson said the furniture sector for instance has continued to suffer, in fact only a few has sustained their operations.

From the over 300 furniture companies operating in Cebu, Philexport now only has 60 members as most of the companies have ceased operations or have temporarily suspended their manufacturing activities, due to lack of financial backbone to survive the difficult market.

“This is the time that the financial institutions [government-owned and privately operated banks] should help us. We need extra capital to continue our export business,” said Genson.

Extra capital to access emerging markets, improved marketing promotions globally and other investments are needed for exporters in order to survive. But, Genson said it seems that the financial institutions are shying away from the sector.

Micro-financing, she said is what is needed for the export sector this time. While the big export companies can easily access bank services, small players on the other hand are having difficulties in looking for ‘friendly” institutions to provide their financial requirements, Genson said.

Genson reiterated her call saying that from 2008 to 2010, a lot of exporters have already suspended operations while others have closed shops due to high supply and low demand of local crafts.

“To effectively address this situation, a more lenient but secure lending policies for our banks and credit institutions be adopted. We can include as one of the requirements for credit accommodation that exporting companies practice ‘inclusive business’ policy so that we can really attain our present administration’s call for inclusive growth,” she said.

 She said exporters had been helping the grassroots industries as suppliers. Genson, who owns an export company called “Venus Arts in Nature” said that “inclusive growth,” means channeling businesses from the bottom, taking into account first in giving opportunities to the ordinary craftsmen and local workers. 

“The more orders the exporters can get, the better for the communities. Many inhabitants who are intrinsic part of the supply chain of exporters are beneficiaries of the supply and demand for local products,” she said.

Genson said that until now, small and medium exporters are as still suffering from lack of credit access, while banks and other financial institutions are still “unfriendly” to small and even to medium sized businesses. (FREEMAN)