Exporters Urge Gov't To Put Up Credit Agency in Zambo

A forklift operator works at a container yard in Zamboanga City. Exporters in Zamboanga Peninsula urge the government to put up a credit facility in Zamboanga City to help them avail of financing services. (Zamboanga Journal)

ZAMBOANGA CITY (Darwin Wee / 07 Apr)) Exporters in Western Mindanao on Friday urged the Department of Trade and Industry (DTI) to put up a government credit and loan agency in the region that will help provide them wide range of financial services.

Alfredo Sarte, president of the PhilExport in Zamboanga Peninsula, said establishing a Philippine Export-Import Credit Agency (Philexim) office in Zamboanga City, the region's capital, will help many exporters to easily avail of government credit and financing assistance.

"Many exporters in this region are in dire need of government credit and loan assistance that will specifically cater to their financing needs, he said.

Sarte said although Philexim has been established in the country, no local exporter was able to avail and benefit from its loan and credit services.

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

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

He said local exporters, who dominantly come from the fishing and marine sectors, have complained that the strength of peso, which rose to 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 production and processing are now starting toloose their appetite to export their product because of the unrewarding profit they get," Sarte said.

DTI officials said they will address the clamor of the local exporters to put up a Philexim office here, which would be under the Department of Finance.

Exporters in the region recently met to prepare a draft they will present to the different government agencies in the May 18 National Export Congress in Zamboanga City.

Sarte said they would ask the government to remove or reduce the fees exporters pay, such as clearances among others, and to urge the Bangko Sentral ng Pilipinas to come up with measures in response to the volatility and abrupt fluctuation of the peso.

Exporters said they will also urge the government to re-establish the "One-Stop Export Documentation Center" to trim down government red tape in a bid to hasten the release of clearances and other exports permits.

Sarte said it usually takes at least 3 months before an exporter gets all these clearances and permits, which causes delays and affects business transaction, particularly with international buyers.

Zamboanga Peninsula is a top exporter or fish products, which comprises at least 40% of the total exports product, followed by seaweeds, shells and octopus, and coconut, tropical fruits, and gift and houseware products.

Sarte said local exporters are expected to discuss their concerns to different government agencies during the conference.