Guided by the national government’s development goals of inclusive growth and jobs generation, state-owned Philippine Export-Import Credit Agency (PhilEXIM) has shifted emphasis of its business course in support of small and medium enterprises (SMEs) and key industries in the supply sectors of the economy.
PhilEXIM President and CEO Francisco S. Magsajo, Jr. said the new direction of the Corporation is in line with the government’s thrust in alleviating poverty and creating opportunities toward industries with greater potentials for employment generation and production.
“Our business model is to be able to complement the banking sector’s growth in terms of portfolio leveraging and creating additional capacity,” Magsajo said. “This is by far our strongest chance to create a critical mass for SME and priority sector development.”
Under its revised major corporate strategies, PhilEXIM projects to scale-up its guarantee portfolio to P40 billion by first half of 2014. This will be undertaken through allocations to the priority sectors of industry, services and agriculture. Magsajo stressed that the industry sector alone will corner more than 60% of the portfolio, adding that “it is where the multiplier effect has the largest impact.”
“Our mandate from the Board is clear: to drive the business towards engaging the supply side of the economy and create a tremendous impact on market forces both on the side of the funder and project proponent,” Magsajo explained.
Because it is sovereign-rated, PhilEXIM guarantees are zero-risk weighted based on Bangko Sentral ng Pilipinas (Central Bank) rules. Magsajo explained that such weighting is key for any bank intending to create better returns on its risk capital.
“The sovereign franchise allows the bank to generate more capacity as it leverages on its capital resources. Our advocacy on the other hand, is to spur development by convincing the financial institutions to employ their freed capital towards helping exports, SMEs and the priority sectors,” said Magsajo, who has been at the helm of PhilEXIM since 2008.
The PhilEXIM chief said further: “There is no way but towards enhancing our business model at PhilEXIM. We must be able to pace equally with our economy which is also geared towards growth. The agency is already primed to be more active in creating market opportunities for development projects.”
For further information:
Mr. IAN A. BRIONES, CES/CEOVI
Corporate Planning and Communications Department
Tel No.: 885-4713