PCCI to negotiate anew for MSMEs fund access

CEBU, Philippines -  The Philippine Chamber of Commerce and Industry (PCCI) will once again sit down with the country’s financial institutions with the hopes of finally coming up with a win-win deal that would ease financial access for MSMEs (micro, small and medium entrepreneurs).

PCCI officer at the same time director general of International Chamber of Commerce (Phils.) Jesus Varela said that the business group is going to coordinate with GFIs (government financial institutions) especially in distributing the US$3 billion credit facility for SMEs that will be made available for the MSMEs in the Philippines, through local banks as conduits.

Varela said PCCI will initially coordinate with the Land Bank of the Philippines, SB Corporation, as access to finance among the small and medium businesses is still one of the top primary concerns despite the low interest rate regime.

In his recent visit to Cebu, Varela said PCCI, including the ICCP will continue to advocate for easier and cheaper access to finance among MSMEs, specially that the environment had becoming much more conducive for business expansions.

Varela’s pronouncement followed after the earlier statement of the Export Development Council (EDC) saying that it is looking for ways on how to solve the concern of easier financial access to exporters, as the  Philippine Export Development Plan (PEDP 2015-2017) is about to expire.

In a statement, EDC deputy executive director Emma Mijares said that the organization is proposing a 10-year extension of the PEDP.

"We are gainfully getting the support of some congressmen," she said adding that the council is likewise pushing hard for the approval of this proposal in the 17th Congress.

Part of PEDP's call is to require government institutions tasked to assist exporters in their financing requirements to "step up in extending credit guarantees" and to explore new sources of credit.

Other actions the EDC intends to take, according to Mijares is to seek assistance and cooperation from international financial institutions such as the World Bank and Asian Development Bank for long-term SME financing projects.

"We will need the help of the private sector on what projects to pursue," said Mijares.

PEDP stated that exporters should be given more access to finance to help them diversify markets, improve their competitiveness, and enhance the quality and range of their merchandise.

Varela believes that today is the right time for Filipino businesses to rise up above, saying "this is the time of economic abundance, which is ours [businesses] for the making or picking." (FREEMAN)