Government proposes revolving fund for exporters

MANILA, Philippines - The government is proposing a revolving, self-sustaining fund for exporters to replace the P1-billion emergency export support fund that was released last year.

In a meeting with exporters, Trade Undersecretary Cristino L. Panlilio said that because the export support fund is dwindling with only P22 million left, there is a need to create another fund to help exporters deal with the crisis.

Panlilio said that the revolving fund can be replenished every two years. He noted that the amount to be borrowed by the exporters can be merit and success based. When asked if this will benefit larger exporters more than the small and medium sized ones, Panlilio said there will be allotment for small, medium and large exporters.

“This will be performance and success based so that there is instant rewarding for firms that are able to perform well,” Panlilio said.

Further, he said that a legislation can be passed implementing a levy on highly successful exporters who received help from the fund. This can make the fund self-sustaining because the big exporters who benefitted from the fund can make contributions to the fund as part of their corporate social responsibility (CSR).

Another means of making the fund self-sustaining is by providing zero cost loans to export firms. This could provide working capital at zero cost to the firm.

“We have to start moving away from the emergency fund and instead develop a continuing export development fund that is self-sustaining or replenishable,” Panlilio said.

For his part, Trade Secretary Gregory L. Domingo said he is open to suggestions on how to further help the exporters. He said that given the fiscal deficit, the move to increase the P22-million emergency fund is highly unlikely.