PhilEXIM guarantees up 33% by end November

Outstanding guarantees issued by the Philippine Export-Import Credit Agency (PhilEXIM) grew by 33 percent as of end November, or from P5.83 billion in the same period last year to P7.77 billion.

"The increase was due mainly to a significant number of issuances on programs of large exporters under the national government’s priority sector such as infrastructure and small and medium enterprises (SMEs)," PhilEXIM president and chief executive officer Joel C. Valdes said in a statement.

PhilEXIM is a government financial institution (GFI) directly under the supervision of the Department of Finance (DOF). Its primary purpose is to extend sovereign guarantee, direct lending, and export credit insurance (ECIs) to SMEs and other selected priority sectors.

Meanwhile, total guarantees from January to November this year alone reached P2.2 billion covering availments by 32 companies.

A total of P2.03 billion were availments from medium-to long-term programs for large exporters while P134.6 million from programs of SMEs. Of this amount, P2 billion came from the infrastructure sector, which incidentally brought a remarkable increase of 1,352 percent from last year’s guarantee issuances amounting to P149.5 million.

As of end November, outstanding ECI amounted to P135.8 million or seven percent better than the P126.7 million recorded in the same period last year.

PhilEXIM officials noted that there was also a 2,171-percent increase in issuance from P1.54 million in 2002 to P3.34 billion this year under the ECI due to the six new accounts. If however failed to specifically mention the said accounts.

Outstanding loans hit P88.4 million or 77 percent higher than the P49.8 million in the same period in 2002. The improvement was attributed to the less-than-market rates and longer tenors being offered by its direct lending program. Of the total, 52 percent consisted of short-term loans and 15 percent were medium- to long-term loans.

Valdes reported that the DOF’s line agency recorded a gross income of P200.45 million as of end November, or nine percent higher than the P183 million in the same period.

"It should be noted that PhilEXIM’s recurring income (or guarantee fees, direct lending, credit insurance income, credit information fees, and interest on investments and deposits) improved by 28 percent from P42.27 million as a result of the marketing campaign for the products and services of the institution," he pointed out.

Expected yearend net income is about P94 million or 124 percent better than last year. As of end November, net income after tax of P66.41 million is already better by 20 percent better than the previous year.

Total assets stood at P1.31 billion and total liabilities amounted to a mere P122.53 million.

Among the major infrastructure activities that the PhilEXIM was involved were in power distribution projects, the North Luzon Expressway, call center development and expansion, solar cell development, mining, and rural electrification.

As of end September, its guarantee coverage for approval totaled $786.5 million (approximately P4.3 billion) representing 40 accounts including the light rail transit, radar approach facility, the NAIA expressway construction, naphtha cracker plant, X-ray machine facility, rice storage facility, hybrid storage facility, and gas pipeline project.

PhilEXIM is an active player of the SME Unified Lending Opportunities for National Growth (Sulong) Program of the Arroyo administration. It is managed by the Department of Trade and Industry (DTI), and participated in by several GFIs including the Land Bank of the Philippines (LBP), the Development Bank of the Philippines (DBP), the Small Business Guarantee Financing Corp. (SB Corp.), the Social Security System (SSS), and the People’s Credit and Financing Corp. (PCFC).

This has also resulted in support from major foreign multilateral agencies as the Asian Development Bank (ADB), and other counterpart exim (export-import) agencies and financial institutions across Europe, Asia and the Americas. So far, the ADB committed $15 million in funding for SME-intended credit facilities for its development.