The Asian Development Bank plans to make a loan of US$15m to the government's Philippine Export-Import Credit Agency (Philexim) to support the financing of small- and medium-scale (SME) exporters, Philexim president Joel Valdes said.
"Our projections show that in two to three years we may need credit lines amounting to 600m-800m pesos because we are gearing up for the SULONG (SME Unified Lending Opportunities for National Growth) programme," Valdes said.
Government financial institutions give small and medium-scale enterprises (SMEs) access to loans of up to five million pesos with reasonable rates and terms under the SULONG programme.
Valdes said that once necessary approvals were obtained for the loan, a drawdown could be made in January.
Attached to the loan are various typical conditions, such as that Philexim must deploy the entire US$15m for on-lending specifically to exporters or suppliers of exporters.
