Philexim sees 79% rise in development loans
State-owned Philippine Export-Import Credit Agency (Philexim) expects to increase its outstanding guarantees for development loans to at least P25 billion by the end of this year, as it accommodates higher demand for its services amid a growing economy.
The P25-billion projection by the end of the year represents a significant 79-percent rise from the P14 billion reported at the end of 2010.
Philexim president Francisco Magsajo Jr. said in a briefing Wednesday that the projected increase in the amount of guaranteed loans would benefit growth sectors such as tourism, power, communications and mining.
The state-owned firm is also willing to extend guarantees on loans that will fund infrastructure projects under the government’s Public-Private Partnership (PPP) program, a key undertaking of the Aquino administration, Magsajo added.
Under the PPP, the government will invite private enterprises to invest in vital public infrastructure projects to attain development targets without aggravating the government’s budget deficit.
Given the huge costs of the projects, banks are encouraged to participate by extending loans to potential PPP investors, and credit guarantee agencies, such as Philexim.
“We are increasing our guarantees in support of the national government’s development programs,” Magsajo told reporters.
Philexim, which is 100-percent owned by the government, is mandated to provide credit guarantees for development loans and loans to exporters. It likewise extends technical assistance, such as in the form of formulating project proposals, for the fulfillment of development programs.
Magsajo said Philexim expects to generate P145 million in net income this year, lower by 56 percent from last year’s actual profit of P332 million.
Philexim likewise expects to make itself more meaningful for the small and medium enterprises (SME) sector by extending more services to SMEs, Magsajo said.
Outstanding loans from Philexim amounted to P570 million, mostly benefiting SMEs, Magsajo said.—Michelle V. Remo
