Exporters keep hopes up for easy financing access

CEBU, Philippines - Cebuano exporters are still keeping their hopes up that access to financing will further ease up for industry players this year, amid the promises given by the government to help the micro, small and medium enterprises (MSMEs) with their monetary requirements.

Philexport-Cebu president Nelson Bascones said that while most exporters did not "feel" the government funding support especially last year, most are still hopeful that connection between government financing institutions (GFIs) and even the private financial organizations and MSMEs, particularly the exporters will tighten.

Recently, House Resolution No. 2568 adopted a recommendation directing concerned government agencies to comply with the directives for the full implementation of the law which mandates lending institutions to allocate at least 10 percent for micro and small enterprises, and not more than two percent for medium enterprises.

According to Bascones, while there is an effort by the government to help the MSMEs in terms of funding support, the mismatch is still apparent.

Under the house resolution, the Bangko Sentral ng Pilipinas (BSP) shall align its regulations on the application of penalties for non-compliance with provision of Republic Act 9501 on the mandatory lending by banks and other entities under its supervision to MSMEs.

R.A. 9501, otherwise known as the Magna Carta for MSMEs, sets the minimum penalties at P500,000 and larger penalties may be imposed in proportion to the amount of non-compliance.

The Micro, Small and Medium Enterprise Development (MSMED) Council will submit an annual report on the status of the penalties for non-compliance with the mandatory lending provision of R.A. 9501 remitted by the BSP, and how these penalties were used or are being used.

These pertain to the implementation of services to MSMEs in the areas of capacity building, technology, information collection and dissemination and other interventions for MSME development, growth and sustainability.

Also, the House resolution extended the mandatory lending provision to MSMEs for another 10 years without further extension in line with the government’s commitment to the Asia Pacific Economic Cooperation (APEC) to advance the MSME sector by ensuring adequate financing.

Further, the national government and the Department of Budget and Management shall provide for the full capitalization of Small Business Corporation as allowed by the law within the next five years as part of the national strategy for inclusive financing.

Likewise, the Department of Trade and Industry shall be directed to review and amend the implementing rules and regulations of R.A. 9501 in consultation with the MSMED Council and to hasten the full capitalization of SB Corp. as may be allowed by law.

Under the uncertain market movement, Cebuano exporters are clueless of its performance in the coming months, although, most are banking their company's survival on the active domestic market.

Government funding support, Bascones said could help small and medium exporters to develop other emerging markets by participating in trade fairs and expositions.  (FREEMAN)