Trade and Investment Development Trade and Investment Development - - PowerPoint PPT Presentation

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PHILIPPINE EXPORT-IMPORT CREDIT AGENCY PHILIPPINE EXPORT-IMPORT CREDIT AGENCY (PhilEXIM) (PhilEXIM) Trade and Investment Development Trade and Investment Development Corporation of the Philippines Corporation of the Philippines

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About PhilEXIM About PhilEXIM

• A government financial institution attached to

A government financial institution attached to the Department of Finance the Department of Finance

• It is the country’s official export credit agency

It is the country’s official export credit agency

• It carries the full faith and credit of the

It carries the full faith and credit of the Republic of the Philippines Republic of the Philippines

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PhilEXIM mandates PhilEXIM mandates

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• 1. To provide exporters with appropriate financing

To provide exporters with appropriate financing services and other types of support. services and other types of support.

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• 3. To support projects in priority areas of the

To support projects in priority areas of the national government. national government.

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PhilEXIM Financing Services PhilEXIM Financing Services

• Guarantees

Guarantees

• Export Credit Insurance

Export Credit Insurance

• Direct Lending Program

Direct Lending Program

• Wholesale Lending Program

Wholesale Lending Program

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Brief Description Brief Description

Wholesale Lending Program

Member Exporters and their Sub contractors Exporters’ Organizations Other source of income; Empowering it to be

• perationally and financially

self sufficient Relend

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Rationale Rationale

• For SME exporters and sub contractors to have

For SME exporters and sub contractors to have immediate access to credit. immediate access to credit.

• The program gives value to private sector participation

The program gives value to private sector participation in delivering government credit services to exporters. in delivering government credit services to exporters.

• To greatly reduce exporters’ dependence on informal

To greatly reduce exporters’ dependence on informal lenders that charge prohibitive rates. lenders that charge prohibitive rates.

• To build sound and financially sustainable organizations

To build sound and financially sustainable organizations

• f exporters that will provide a wide range of services to
• f exporters that will provide a wide range of services to

its members and other industry players on a permanent its members and other industry players on a permanent basis with lesser dependence on donors or government. basis with lesser dependence on donors or government.

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Mode of Credit Delivery Mode of Credit Delivery

PhilEXIM Partner/Conduit End Borrower

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Program Features Program Features

Eligible Partner Conduit:

Exporters’ Organizations - which can either be primary associations, federation, chambers, chapters or cooperatives.

Eligible End Borrowers:

• 1. Direct Exporters – producers, consolidators and

traders.

• 2. Indirect Exporters – producers of import substitutes,

suppliers of packaging materials and other inputs.

• 3. Sub-contractors of direct exporters

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Program Features Program Features

Type of Credit Facility and Purposes: One-year Revolving Credit Line to be used for the following purposes:

• Check Rediscounting Facility to finance POs and LCs of

end borrower/member;

• Acquisition of small equipment and tools needed in
• perations;
• Acquisition of common service facility (machinery or

equipment for production) to be leased out to sub- contractors on per job order basis to ensure standard quality outputs, maximize productivity and lower production cost;

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Program Features Program Features

• Improvement of workplace, storage or warehouse

facility;

• Advertisement and promotion, design, packaging and
• ther quality maintenance and upgrading costs;
• Participation of member exporters in local and

international trade shows.

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Program Features Program Features

Credit Limit Credit Limit Minimum Minimum Maximum Maximum Exporter Organizations Exporter Organizations P 1.0 Million P 1.0 Million P 25.0 Million P 25.0 Million Single borrower’s limit (SBL) for end-borrower:

• Not to exceed P500,000.00 per end borrower for all

combined purposes. However, the SBL can be increased up to P1,000,000.00 subject to the approval of PFMC and additional criteria set by PhilEXIM as indicated in the eligibility criteria of end borrower.

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Financial Charges for Exporters’ Organization

Program Features Program Features

One (1) year revolving credit line One (1) year revolving credit line a. a. Interest rate Interest rate 1% per month 1% per month b. b. Application fee – one time Application fee – one time payment upon application payment upon application P 3,000 or ¼ of 1% of applied P 3,000 or ¼ of 1% of applied amount whichever is higher to be amount whichever is higher to be deducted from processing fee deducted from processing fee c. c. Processing Fee – one time Processing Fee – one time charging per approved charging per approved credit line credit line P 5,000 or ½ of 1% of approved P 5,000 or ½ of 1% of approved line whichever is higher line whichever is higher d. d. Repayment Term Repayment Term Principal – one time payment Principal – one time payment based on maximum one (1) year based on maximum one (1) year term of Promissory Note term of Promissory Note Interest - payable every quarter Interest - payable every quarter

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Program Features Program Features

Security Requirements

• Continuing assignment of receivables, PO’s, LC’s and

Checks being rediscounted

• Post dated checks of conduit to be issued for every

availment

• Suretyship agreement of all Board Members and Treasurer
• f Exporter Organization *
• Assignment of other acceptable collaterals like REM, CM’s,

insurance policies of end borrower, if required by the conduit * Subject to approval of CRECOM, for mature, reliable and strong conduit with capable and credible leaders, Suretyship Agreement maybe replaced by Deed of Undertaking by majority of Board of Directors of the Association and Key Officers.

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Program Features Program Features

Accreditation Criteria:

• 1. Duly registered with SEC for at least five (5) years, 3
• 1. Duly registered with SEC for at least five (5) years, 3

years should have been devoted to various projects years should have been devoted to various projects that build up membership and organizational strength, that build up membership and organizational strength, with permanent office and operation facilities for with permanent office and operation facilities for activities and meetings. activities and meetings. 2. 2. Has standing committees with clearly defined functions Has standing committees with clearly defined functions and respective goals. and respective goals.

4. 4.

Has vision, mission and corporate objectives, well Has vision, mission and corporate objectives, well understood and supported by its members and officers. understood and supported by its members and officers.

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Program Features Program Features

Accreditation Criteria:

• Has complete and well managed records, accounting

Has complete and well managed records, accounting and internal control system, membership directory, and internal control system, membership directory, written policies, board resolutions, and minutes of written policies, board resolutions, and minutes of committee meetings. committee meetings.

2. 2.

With good leadership that practices the fundamentals With good leadership that practices the fundamentals

• f good governance.
• f good governance.

4. 4.

With committed and active membership that are direct With committed and active membership that are direct exporters, import substitute producers or their sub exporters, import substitute producers or their sub contractors. contractors.

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Program Features Program Features

1. 1.

With acceptable membership fee structure with at least With acceptable membership fee structure with at least 85% collection rate as permanent source of funds for the 85% collection rate as permanent source of funds for the

• rganization’s operation activities and projects.
• rganization’s operation activities and projects.

3. 3.

Has total asset of at least P500,000 and available working Has total asset of at least P500,000 and available working capital for operations of P200,000. capital for operations of P200,000.

5. 5.

Has debt-equity ratio of not more than 60:40 at the time Has debt-equity ratio of not more than 60:40 at the time

• f accreditation/application.
• f accreditation/application.

7. 7.

Board members and key officers have very satisfactory Board members and key officers have very satisfactory credit record. credit record.

Accreditation Criteria:

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Benefits Benefits

Increase opportunities for the exporters to develop and Increase opportunities for the exporters to develop and sustain its operations. sustain its operations. Incentive for members to be proactive in promoting export Incentive for members to be proactive in promoting export business and accept orders. business and accept orders. Immediate availability of funds to exporter members or its sub Immediate availability of funds to exporter members or its sub contractors, less documentation contractors, less documentation Additional revenue for the association to support their Additional revenue for the association to support their

• perating cost and special projects for its members.
• perating cost and special projects for its members.

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Program Status Program Status

Approved Credit Line Approved Credit Line

• P 95.00M
• P 95.00M

Industries Served: Industries Served:

Gifts, Toys & Houseware, Gifts, Toys & Houseware, Fashion Accessories, Food Processors, Fashion Accessories, Food Processors, Handicrafts using indigenous materials Handicrafts using indigenous materials

Loan Release Loan Release

• P 64.75M
• P 64.75M

Collection Experience Collection Experience

• 100%
• 100%

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THANK YOU!!! THANK YOU!!!