More export groups to get WLP funding

Two more export oriented organizations in Cebu will benefit from the P25 million Wholesale Lending Program (WLP) offered by the state-owned guarantor Philippine Export-Import Credit Agency (PhilExim).

The Seaweed Industry Association of the Philippines (SIAP) and Cebu Furniture Industries Foundation Inc (CFIF) will soon avail of this program, to help the organizations’ struggling members, through providing credit facility.

Already, PhilExim has granted P25 million WLP to Gifts, Toys and Houseware Foundation, Inc. (Cebu-GTH) last year, and the agency is about to release WLP funds to the Fashion Accessories Manufacturers and Exporters (FAME) here.

PhilExim officer-in-charge for Visayas and Mindanao Alex C. Arabis said that FAME is going to get the initial P4 million soon, as the agency is about to release the money to the organization.

Under the WLP, business support organizations (BSOs) like the Cebu-GTH, and FAME, are allowed to lend the money in retail to its members. For Cebu-GTH, it has limited its loanable amount per company to P1 million.

PhilExim has allocated a total of P450 million for the WLP facility.

According to Arabis, PhilExim is reaching out to more export oriented organizations to avail of this fund, in order to help the ailing exporters which are heavily affected by the “mighty” Peso value versus the US dollar.

“We are operating in a proactive approach. We reach out to the export organizations to avail of this program,” said Arabis in an interview during the General Membership Meeting of Cebu-GTH held Wednesday at the Casino Español.

Meanwhile, a report by its audit committee showed that PhilExim is experiencing severe financial difficulties due partly to the underutilization of its budget.    

According to the report PhilExim has generated revenues of P141 million in the first three quarters of the year or P53 million, which is below the target of P194 million.

Income from operations dropped 79 percent to P16.3 million in the first nine-months of the year from P76 million posted a year ago.

In a memorandum to the board of directors, PhilExim’s audit committee expressed concern about the agency’s fiscal health.

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 1080. It was later renamed TIDCorp and granted expanded functions by Republic Act 8494.

The corporation was officially designated as PhilExim through Executive Order 85 dated March 18, 2002. — Ehda M. Dagooc