MANILA, Philippines - State-run Philippine Export-Import Credit Agency (Philexim), an attached agency of the Department of Finance (DOF), is aiming to increase its net income to P250 million this year as it hopes to hitch a ride on the recovery of exports this year.
“We are targeting P250 million this year because prospects are good. We’re expecting a rebound in exports,” Philexim president Francisco Magsajo Jr. said in an interview on the sidelines of an investment forum yesterday.
The P250 million is higher than the P147- million target set for last year, he said.
Magsajo said income would continue to come from guarantees and interest income. The agency, a government-owned and controlled corporation, is only allowed to invest its income in Triple AAA bonds and government securities.
The agency has yet to release its actual net income last year, which Magsajo said is still being audited by the Commission on Audit (COA).
Philexim, which is 100 percent owned by the government, is tasked to help Philippine exporters gain access to international markets and become globally competitive. Established in 1977, it is also known as the Trade and Investment Development Corp. of the Philippines (TIDCorp). It is mandated to provide credit guarantees for development loans availed of by small and medium enterprises and loans to exporters. It also provides technical assistance to SMEs and exporters in the form of formulating project proposals for their programs.
In 2007, the agency posted losses partly because of the global economic slowdown but reform measures such as cost-cutting initiatives and expediting guarantee applications helped the agency recover.
Magsajo said Philexim would continue to increase the amount of loans and guarantees given to small and medium enterprises – mostly in the export business, as a means to help exporters cope with the global financial turmoil.
He expressed optimism that environment would be better this year as exporters seek out other markets for their products.