PhilEXIM offers P450M for SMEs

State-owned Philippine Export-Import Credit Agency (PhilEXIM) has made available P450 million to help the government pump prime the development of small and medium entrepreneurs (SMEs) in the export market.

PhilEXIM is a government financial institution attached to the Department of Finance (DOF) focusing in trade financing such as direct lending, guarantees, export credit insurance to SMEs, large accounts and government specific priority sectors.

PhilEXIM president and chief executive officer Virgilio R. Angelo said it set aside funds that will cater to the exporter looking for working capital or business improvement financing in line with its business thrust of assisting in the development of the SME sector.

"We are strongly supportive of the government’s pursuit to enhance the business competitiveness and success of the SMEs, especially in the regions," Angelo said.

PhilEXIM will conduct a series of roadshows and regional briefings to promote the agency’s various guarantee and lending programs. Among the areas to be covered are in Baguio, Bicol region, Cebu, Cagayan de Oro, Bacolod and Davao.

Angelo explained that in previous years, the handicraft, furniture, textile, jewelry, gifts, toys and houseware sectors benefited from PhilEXIM loan financing. He said for 2006, PhilEXIM intends to reach out to more areas in the fresh fruits, high-value crops, agriculture and sugar markets.

"With more funds made available, our loans will benefit more SMEs. Parallel to this, we are also making sure that along with the funding availability, loan processing, requirements and rates are being made realistic to the needs of the exporters," he explained.

Angelo is inviting more banks to partner with PhilEXIM as it capitalizes on more financial opportunities. It has existing joint agreements with more than 10 commercial banks to enable bank exporter-clients to avail of its financing facilities.