Philippines eyes Swedish-backed export credit framework

MANILA, Philippines — The Philippines is looking to tap a Swedish-backed credit framework to support the country’s defense sector.

The Department of Finance (DOF) recently conducted a workshop with Swedish companies to explore how the Swedish Export Credit System can support the Philippine defense sector.

To facilitate and promote exports and the internationalization and competitiveness of Swedish industry, the European country is offering a government-backed export credit system.

The system is designed to facilitate and promote exports by offering financial solutions and guarantees to Swedish exporters and their international buyers.

The DOF said its discussion with Swedish firms provided an in-depth review of the system’s financing components including mechanisms, challenges and experiences from other countries.

The DOF said that if pursued, the Philippines could receive up to 100 percent financing, long repayment periods and flexible payment terms.

Swedish Ambassador Anna Ferry said Sweden considers the Philippines as a strategic partner to improve trade relations.

“The Philippines is a very strong partner for Sweden in our endeavors to support peaceful work,” Ferry said.

Ferry likewise emphasized the credibility of the export credit system, with Sweden being one of the few countries in the world to achieve an AAA rating, the highest possible rating that may be assigned to issuers.

This means that Sweden has a high degree of creditworthiness, easily able to meet financial commitments and has the lowest risk of default.

Last year, Sweden expressed interest in expanding investments and collaboration with the Philippines particularly in the areas of infrastructure, transportation, digitalization, health care, energy and responsible mining.