State-firm Philippine Export-import Credit Agency (PhilEXIM) has approved a P25 Million revolving credit line facility for the Cebu Gifts, Toys and Housewares Manufacturers and Exporters Association, Inc. (Cebu-GTH), one of the country’s biggest exporters’ association, a senior official said yesterday.
PhilEXIM President and CEO Virgilio R. Angelo announced the facility during the launching of the agency’s Wholesale Financing Program at the Casa Espanol in Cebu City.
He said this move is the institution’s response to the government’s call for more accessible credit and financing opportunities to the SME sector. ”We are opening the facility as a model for wholesale financing to be able to address the SME exports. No less than President Gloria Macapagal-Arroyo wanted credit availability to be reached by a greater number of our SME groups, especially in the regional areas, where growth and development must begin,” Mr. Angelo said.
With the wholesale financing, Mr. Angelo said, PhilEXIM hopes to open more financing options more financing options not only for SMEs, but also for similar exporting associations, subcontractors and suppliers. Moreover, he added, this model will be a relief of exporters from fallings ales owing to the local currency appreciation.
Meanwhile, Cebu-GTH President Jenifer Cruz lauded PhilEXIM for continuously assisting organizations such as theirs, adding that the agency is in the opportune moment to come up with such programs that further the business growth and competitiveness of any export organization.
“We thank PhilEXIM for this partnership. Many of our members will be relieved and more importantly, assured that our collaboration with the government will yield productive pursuits for us,” Mr. Cruz said.
Last March, PhilEXIM and Cebu-GTH signed a Memorandum of Agreement wherein the state sovereign guarantor will provide a wholesale lending facility through a revolving credit line to be made available for suppliers and subcontractors which are members of the Cebu-based organization.
Mr. Angelo explained that the facility, apart from credit accessibility, will greatly reduce exporters dependence on opportunistic financing that charge prohibitive rates.
He added that the program feature of the facility is designed for exporters that may be SEC-registered primary associations, federations, chambers, chapters of cooperatives.
He further explained that the wholesale program can be turned-over four times by export subcontractors leading to the production to some US$8.0 Million in export sales.
Under the program conduit associations can avail of a credit limit with a minimum of P1 Million or maximum of P25 Million, with a single borrower’s limit of P500,000 per end-borrower. (PhilEXIM)
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