Total guarantee issuances by state-owned sovereign guarantor Philippine Export-Import Credit Agency (PhilEXIM) has reached P8.41 billion from 2005 to end-September 2007, the agency reported during the weekend.
PhilEXIM president and chief executive officer Virgilio Angelo said that the figure shows a 21-percent increase than the previous level of P6.94 billion registered during the previous three-year period of 2002-2004.
In terms of financing for small and medium-scale exporter-entrepreneurs (SMEs), Angelo said the state-owned company has launched its wholesale lending program with a fund of P450 million.
“Our developmental contributions have always been the force behind our accomplishments in 2006 and for the last three years,” Angelo said.
He said that as of September 2007, 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 this year.
Export credit insurance (ECI) showed its strongest performance by far, since its introduction in 1998, registering ECI business volumes of P23.19 billion as of September 2007 or a six-fold increase over the agency’s target for the nine-month period, Angelo also said.
Export sales, meanwhile, grew to $658.51 million in three years.
Angelo added that this 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 said.
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, business process outsourcing, food processing, fertilizer export, electronics, water transport, tourism, agri-modernization, tourism and power generation sectors.
Angelo explained PhilEXIM’s operations after a report by its audit committee showed that the agency is experiencing financial difficulties.
The report showed that the agency has generated revenues of P141 million in the first three quarters of the year or P53 million below the target of P194 million.
Income from operations dropped by 79 percent to P16.3 million in the first nine-months of the year from P76 million posted a year ago, the report also showed.
The audit committee of the institution has found this alarming and has asked the board of directors to put in place stronger measures to address a further deterioration in PhilEXIM”s financial status.
PhilEXIM, also known as the Trade and Investment Development Corp. of the Philippines (TIDCORP), is a government financial institution attached to the Department of Finance.
The corporation was established on Jan. 31, 1977 as the Philippine Export and Foreign Loan Guarantee Corp. (Philguarantee) through Presidential Decree No. 1080. It was later renamed TIDCORP and granted expanded functions by Republic Act No. 8494.
The corporation was officially designated as PhilEXIM through Executive Order 85 dated March 18, 2002.