Exporters ask: Where’s the ESF?

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PHILIPPINE exporters are seeking the immediate release of the export support fund (ESF) to help them recover from the global economic crisis.

The Philippine Exporters Confederation (Philexport) and support organization Customs Bonded Warehouse Operators Confederation (CBWOC) said the initial P200 million out of the P1 billion allocated budget released in July to the Department of Trade and Industry (DTI) has yet to be distributed. The DTI is still scrutinizing proposals for the use of the fund.

CBWOC president Alfredo Yatco told PortCalls the longer it takes for government to release the budget, the harder it will be for exporters to recover.

CBWOC is requesting a P100-million support budget from the ESF to strengthen its members’ domestic market and allow them to service new sectors such as food and organic products.

Yatco said major exporter-clients of CBWOC members are looking at the ESF to finance their respective “rebound measures”.

Yatco remains hopeful the funds will be released before the election ban on public spending kicks in.

Based on proposals received by the DTI through the Export Development Council, about 70% of the ESF will be given to small and medium-scale enterprises and the balance used for high-end projects such as in the electronics, business-process outsourcing and IT sectors.