Exporters ask DTI to set up credit & loan agency in Zamboanga

text DARWIN T. WEE

Exporters from this region have asked the Department of Trade and Industry (DTI) for support for the establishment of a government credit and loan agency in Zamboanga Peninsula with the purpose of providing a wide range of financial services to local exporters.

Alfredo Sarte, Zamboanga Peninsula region's PhilExport president, said establishing a Philippine Export-Import Credit Agency (Philexim) office specifically in Zamboanga city will help local exporters in this region to easily avail of credit and financing assistance from the government amid the appreciation of the peso and the current high price of fuel, which he said have cut down the exporter's profit margins.

"Exporters in this region are in need of a government credit and loan assistance that will specifically cater to the financing needs of the local exporters. With no financing agency office and personnel here, exporters in Zamboanga peninsula have not been able to tap the government's financing services and program," he said in an interview.

Mr. Sarte said although Philexim has been established in the country, no local exporter was able to avail and benefit from the financing institution's loans, and credit services.

With the present crisis besetting the export sector, Mr. Sarte notedthe assistance offered by the government financing institution willhelp mitigate the impact of the rapidly appreciating Philippine currency and high price of fuel, which add to their production cost.

"Local exporters need a high loan working capital and less interestrate," he said.

He said local exporters, who dominantly come from the fishing and marine sectors, have complained that the strength of peso, which roseto nearly 10% since the end of 2004, is cutting their profit margin down to at least 10 to 15 percent.

"Businessmen engaged in fishing, particularly the sardines andsardine-like species production, and processing are now starting toloose their appetite to export their product because of theunrewarding profit they get," Mr. Sarte said.

According to DTI, they will address the clamor of the local exportersto put up a Philexim office in this city to the Department of Finance.

Local exporters from this region met recently to prepare a draft thatwill be presented to the different government agencies in the upcoming National Export Congress in Zamboanga city on May 18.

He said among the issues and concerns they will present before the identified government agencies are the possible removal or reduction of fees being paid by exporters for the government agencies that issue a variety of clearances; to urge the Bangko Sentral ng Pilipinas to come up with some measures in response to the volatility and abrupt fluctuation of the peso, and the visibility of the government financial institutions in the region.

Local exporters will also urge the government to re-establish the"One-Stop Export Documentation Center" to trim down government red tape in a bid to fast-track local exporters from getting clearances and other exports permits in due time.

Mr. Sarte said a local exporter usually takes at least three months in getting permits and clearances, which cost delays and affects his business transaction with international buyers.

Among the top exports products in Zamboanga peninsula is fishing, which comprises at least 40% of the total exports product, followed by other marine product, such as seaweed, shells and octopus, others includes coconut, tropical fruits, and gift and houseware products.M

He added local exporters from the identified eight majorsectors in Zamboanga peninsula would also present their respective issues and concerns to the different government agencies during theconfab.

On the regional level, he said, local exporters will also encourage the Regional Development Council to create a sub-committee on export under the agro-industrial committee.

The proposed sub-committee will aim to provide substantial assistance and to oversee the welfare of the export industry in the region. (ZS)