Philexim pledges to remit P217M from earnings

After earning more than twice last year over what it made in 2009, State-run Philippine Export -Import Credit Agency (Philexim), formerly Trade and Investment Development Corp. of the Philippines (Tidcorp), pledged to remit P217 million to the national coffers. Philexim already transferred P150 million on Jan. 28, when government-owned and –controlled corporations and government finance institutions turned over P29 billion worth of dividends to President Benigno Aquino III in a ceremony led by Finance Secretary Cesar Purisima and Bangko Sentral Gov. Amando Tetangco Jr. The balance of P67 million would be remitted after the Commission on Audit completes its annual audit report on Philexim. The agency said its net income grew 128 percent to P333 million last year, the third consecutive year that Philexim made good money validating the soundness of its business model. "The outstanding net result in the agency’s performance, despite weak capital position to a benchmarked company in 2010, is proof of its corporate worth," Philexim said in a statement. “The introduction of reforms in core business development, financial intermediation, balance sheet management, remedial action, operating efficiency and risk management, among others, is a critical management intervention that ushered in the transformation of the company," it added. The bank's core income expanded 25 percent to P364 million last year from P290 million in 2009, while its revenues grew 45 percent to P673 million from P465 million, Philexim data showed. Most of its earnings came from new and existing projects in power, agri-modernization, infrastructure, steel manufacturing, food production, and other export products. A credible export credit agency Established in 1977 as the Philippine Export and Foreign Loan Guarantee Corp. by virtue of Presidential Decree No. 1080, it was renamed Tidcorp and given expanded functions by Republic Act No. 8494 on Feb. 12, 1998. Recognizing its critical role in providing a wide range of financial services, the Tidcorp was renamed as Philippine Export-Import Credit Agency or Philexim under Executive Order No. 85 of March 18, 2002. Philexim was created in response to the need to pursue the State policy of encouraging and promoting the expansion of Philippine exports and to establish a strong and credible export credit institution dedicated to financing facilities and services in support of support the country’s export sector. It was designated as the export-import credit agency to strengthen its role in developing and expanding international trade and respond to the country’s economic requirements. Philexim said its plans for 2011 is in line with the agenda of President Aquino on investment opportunities in basic metal production, power generation, business process outsourcing, and general infrastructure spending, as well as the public-private partnership program. — VS, GMANews.TV