Export sector bats for more lenient but secure financing

CEBU, Philippines - While exporters are still holding on to high hopes of recovery, PhilExport-Cebu president Venus Genson reiterated her call for the government to direct serious assistance for the struggling industry.

“We need to strengthen the public-private-partnership (PPP) by introducing bolder micro or small and medium enterprise (SME) financing schemes as part of the whole package,” said Genson.

Genson said although exporters are seeing recovery in the export market, lack of financing “is a big bane for exporters and their supply chains.”

She said from 2008 to 2010, a lot of exporters suspended operations while others ultimately closed shops due to high supply and low demand of local crafts.

However, a number of exporters and their respective supply chains are still hanging on with the belt-tightening measures until the unfavorable situation is over.

“To effectively address this situation, a more lenient but secure lending policies for our banks and credit institutions should be adopted,” she said.

“ We can include as one of the requirements for credit accommodation the fact that exporting companies practice ‘inclusive business’ policy so that we can really attain our present administration’s call for inclusive growth,” she added.

Exporters, she said, had been helping the grassroots industries as suppliers.

Genson, who owns an export company called “Venus Arts in Nature”, said inclusive growth means channeling businesses from the bottom, first taking into account giving opportunities to the ordinary craftsmen and indigenous workers.      

“The more orders the exporters can get, the better for the communities. Many inhabitants who are intrinsic part of the supply chain of exporters are beneficiaries of the supply and demand for local products,” she said.

Genson said that until now, small and medium exporters are as still suffering from lack of credit access, while banks and other financial institutions are still “unfriendly” to small and even to medium-sized businesses.

Department of Trade and Industry undersecretary Adrian Cristobal Jr. admitted that access to credit is one of the top three issues of SMEs in the Philippines today.

Although there are existing credit windows being provided by the government-owned banks and other government financial institutions (GFIs),  this problem has continued to haunt the SME sector, he said.

Cristobal mentioned the existence of the SB Corporation, which has been helping small and medium entrepreneurs around the country in their capitalization requirements.

According to Cristobal, SB Corporation, among other GFIs, has become a channel for financing to micro, small and medium businesses across the Philippines. /JMD (FREEMAN)