ar_2010.pdf

Sustaining Stable Growth to the Next Level

ANNuAL RepoRt 2010

Our AspirAtiOn

By 2013, we will be a viable government financial institution, realizing a 15% return on equity.

We will be the best in our core competence of issuing guarantees, delivered by a dynamic organizational structure and fully-automated front and back end systems.

We will be a preferred employer, drawing the best skills and competent personnel from the industry where we belong.

this is our vision. this is our inspiration.

Our COmmitment

We are a sovereign guarantor extending credit, insurance and related services to business entities.

We are committed to contribute to national development by

•stimulating,increasinganddevelopingtheexportofgoods and services; and

•promotingandfacilitatinginvestmentinstrategicsectors of the economy.

We are proud to be phileXim.


the cover’s composite image of the blue sky juxtaposed with the green foliage and the rock formation signify stability and infinite possibilities that reinforces phileXIM’s ability to rise beyond challenges. through innovative reforms combined with prudently set management directives, its aspiration steadily rises to a higher level of growth.

the fusion of natural elements also serves to underscore the metaphor that phileXIM is also an advocate of ecologically efficient ventures/initiatives that are an integral part of the government’s agenda.

ANNuAL RepoRt 2010


FinAnCiAl HigHligHts

Tabl

e o

f C

on

Ten

Ts

net WOrtH

2008 2009 2010

1,500

1,200

900

600

300

0

973616

486

COmpreHensiVe inCOme

2008 2009 2010

500

400

300

200

100

0

357

114120

tOtAl eXpenses

2008 2009 2010

500

400

300

200

100

0

445367

313

tOtAl reVenues

2008 2009 2010

1,000

800

600

400

200

0

800

536447

tOtAl liAbilities

2008 2009 2010

3,000

2,500

2,000

1,500

1,000

0

2,3462,2401,994

1 Financial Highlights 2 Message of His excellency 3 Message of the Chairman of the Board 4 Report of the president & Ceo 6 Role of phileXIM 10 Review of operations 14 Highlights of 2010 16 Corporate Social Responsibility 17 Board Level Committees 18 Statement of Management's Responsibility for Financial Statements

19 State Auditor’s Report on the Financial Statements 20 Balance Sheet 21 Statement of Comprehensive Income 22 Statement of Cash Flows 23 Statement of Changes in equity 24 Notes to Financial Statements 34 Board of Directors 36 Corporate officers 38 Corporate Values 39 Worldwide Alliances/partnerships 40 Management Directory

tOtAl Assets

2008 2009 2010

4,000

3,500

3,000

2,500

2,000

0

3,3192,856

2,480

2008 and 2009 figures as restated

SuStaining Stable growth to the next level

Message of His Excellency

My warmest greetings to the philippine export-Import Credit Agency (phileXIM), on the publication of your 2010 Annual Report.

our country's growth depends much on our ability to hone our local industries as active participants in the national economy. As the institution tasked with extending credit, insurance, and related financial services, you have been instrumental in increasing the capabilities and restoring the confidence of our local entrepreneurs, enabling them to compete in the global markets. these achievements augur well for the development of our country's export and priority sector industries and, in a much larger sense, for our collective vision to raise the standards of business and industry in the philippines.

As you close another fruitful year, may you continue to fulfill your mandate as positive instruments of change. In this daylight of hope, we see a bright future and a horizon of opportunities for our nation. Let us remain united on the straight and righteous path as we usher in an era of efficiency and responsible management in government.

BEnigno S. Aquino iiipresident of the Republic of the philippines

2 Philippine Export-import Credit Agency

32010 Annual Report

With the new Administration’s assumption into powers, phileXIM continues to play its role as partner towards achieving the country’s set economic goals. the improved financial

performance for 2010 has showed that with governance standards in place in the government corporations, which is an advocacy of the Aquino Administration, such has helped phileXIM stood the test of unpredictable forces that may affect its operations.

As Chairman of phileXIM’s Board, the tasks ahead are welcome challenges, more specifically, in pushing for the economic agenda of the government. An integral part of the Aquino Administration’s agenda is to fast track rapid development of the economy that is strongly felt by marginalized sector for the betterment of their lives. With this agenda, the necessary skills and potentials of the phileXIM’s set of dedicated people are also being challenged so the expectations set by this Administration can easily be attained.

truly resolved with its mandate, phileXIM has continued to contribute in the development of trade and industrial expansion particularly in power, mining, infrastructure, steel manufacturing, food production and other businesses in the export industry. the previously initiated reforms to sustain growth that enhanced its policies to make it more result-driven, strengthened its risk management framework and developed qualified middle managers to be potential leaders in their respective specialization are critical strategies for phileXIM to remain a key player in the industry as well as in achieving the economic agenda of the government.

With the challenges ahead, I encourage phileXIM to carry on its noble venture of working in partnership with the government towards progress.

My warmest congratulations to the Board, Management and Staff of phileXIM.

Message of theChairman of the Board

Cesar V. PurisiMaBoard Chairman, phileXIMSecretary, Department of Finance


the company was able to achieve its own liquidity requirements through sustained internal growth, without any cash support or subsidy from government except for the contingent Rop guarantee for bank credit lines. Among others, the following were the key accomplishments for the year:

sustaining revenue generationthe year ended with significantly better operating results, 26% on top of its Corporate operating Budget (CoB). Surge in income grew year on year by 49% while expenses were kept to what were only crucial to achieving the financial goals so expenses were under strict control at just 85% of the CoB. provisions totaled at p100 million which is p20 million more than what was

Y ear 2010 established a historic high performance for phileXIM with a total comprehensive income of p357 million, 214% more than what was earned in 2009. the agency’s outstanding net result,

despite its weak capital position, not only demonstrates the effectiveness of the agency’s business model but also a proof of its corporate worth. the agency paid a cash dividend of p150 million to the National Government, the biggest compared to the combined total of p53 million paid in four (4) separate years since inception.

We have been able to achieve this result because of the introduction of reforms in core business development, financial intermediation, balance sheet management, remedial action, operating efficiency and risk management, among others. they were very critical management interventions that ushered in the transformation of the company.

For three consecutive years, we have shown that we can deliver results with consistency. our 2010 performance is indicative of the measures/disciplines that we systematically apply to realize major initiatives set in our business plan:

•Sustainingrevenuegeneration•Re-aligningandreorganizingpersonnel•Completingcomputerizationofbackroom•Participatinginremedialinterventionofyellowflagaccounts•Spinning-offtheSMEbusinessdevelopmentfunction•Sellingoffixedassetsandmortgageinterests•ImplementingthenewCapitalAdequacyRatioframework

report of the President & CeO


52010 Annual Report

budgeted in ongoing conservative efforts to strengthen the balance sheet. Measurable returns were substantial. Net interest yield on earning assets is 7.44%, which suggests a sufficient mix of investments vis-à-vis its counterpart interest-bearing liabilities. the rich source of revenues comes from contingent guarantees which expanded to p14 billion in 2010 and from which core income of p362 million was derived.

re-aligning and reorganizing personnelto attain an organizational makeover and strengthen the company’s personnel, phileXIM initiated the Job evaluation (Je) project at the first quarter of the year. this gave rise to the organizational empowerment plan. the scheme aims to create a middle management structure that is empowered to drive decisions across operating units to increase production and absorption capacity for additional investments. the move also sought to deepen the supervisory bench and reinforce succession planning. Because of its innovativeness, the project garnered the outstanding Development project Award in the Human Capital Development Category by ADFIAp.

Completing computerization of backroom In its continuous pursuit of operational efficiency in the workplace, the agency rolled out its very first automated system, the trade Finance and Loan System (tFLS) for loans and trade financing in February 2010. the automation reduced manpower in loans operations from six to two personnel. the excess workforce was eventually re-deployed to the revenue-generating departments.

selling of fixed assetsOperations in two company-owned floors in CitibankCenterweretransferredtoonefloorattheCitibankTowertogenerateliquiditybyputtingthefloorsupforsale.Themove will also create an additional investment ceiling and improve transactionflows. PhilEXIM’swarehouse inSanFernando, pampanga consequently served as a Business Continuity and Disaster Recovery Site where archives and back-up records reside.

Participating in remedial intervention of yellow flag accountsthe company’s aggressive moves to pursue foreclosures, dacion en pago arrangements and collection of payments from default accounts were brought about to prevent the spiraling of collection problems and avoid recurrence of previously mishandled accounts. A joint effort of phileXIM and National Home Mortgage Finance Corporation (NHMFC) resulted to collection of p100 million from a workout account. the payment involved a government-to-government transaction and allowed phileXIM to commence the restructuring of the unpaid balance of the loan.

Moreover, a framework for risk management was developed to sustain revenue generation via a portfolio risk classification system which initiates Management action to improve overall portfolio value that would ensure continuousflowofrevenueandcurtailloss.

spinning-off the sMe business development function to grow the SMe portfolio and redirect the strategies toward SMe financing, an independent unit known as the SMe Department under the Asset Management Sector was created. Management positioned the Department as a key organizational interface between phileXIM and the SMe clientele. In turn, the spin-off between Large Account and SMe Account responsibilities meant more focused activities on the two core businesses, especially on wholesale financing initiatives, and better synchronized channels and regional marketing.

New Capital adequacy (Car) framework for PhileXiMBecause of its unique franchise as a financial institution, phileXIM was allowed by the Monetary Board to operate at a Capital Adequacy Ratio of 3% for 2011 and 5% beginning January 2012. While phileXIM has no deposit liabilities, its debts which are fully guaranteed by the National Government distinguishes its CAR from the minimum 10% applicable to banks.

By and large, it will take a slow yet deliberate effort by the company to reach its prime and make a significant difference in the financial market. the organizational structure to make the operations profitable had been set up notwithstanding the constraints of its apparently modest capital position.

the Benigno S. Aquino III administration is in the best position to create in phileXIM the competence to help bridge the financing requirements of the nation’s ongoing developmental projects, especially the public private partnership (ppp) program.

A determined decision of the new dispensation to infuse fresh capital into the agency and the timing of such contribution will be its strongest affirmation of support. Given a strong capital base and proper governance-- through prudent policy formulation of the Board and the professional execution by Management—the past three years of operating success can be replicated. Beyond a doubt, phileXIM’s aspiration will sustain stable growth to the next level.

FraNCisCO s. MaGsaJO, Jr.Board Vice-Chairman

president & Ceo


the philippine export-Import Credit Agency (phileXIM) also known as the trade and Investment Development Corporation of the philippines

(tIDCoRp), is a government owned and controlled corporation attached to the Department of Finance. the Corporation was established on January 31, 1977 by virtue of presidential Decree No. 1080, and it was later granted expanded functions under Republic Act No. 8494 on February 12, 1998. In acknowledgment of its critical role in providing a wide range of financial services, the Corporation was designated as the country’s official export-Import Credit Agency through executive order No. 85 dated March 18, 2002.

The role of PhileXiM

COrPOraTe OBJeCTiVes aNd FuNCTiONs

1. to promote and facilitate the entry of foreign loans into the country for development purposes having special regard to the needs of export-oriented industries, industries registered with the Board of Investments, public utilities, and industries the promotion of which is encouraged by government policy;

2. to guarantee loans granted by philippine banking and financial institutions to qualified exporters, producers of export products, and contractors with approved service contracts abroad;

3. to facilitate and assist in the implementation of approved service contracts abroad entered into by philippine entities, enterprises, or corporations with foreign exchange earning potentials, by providing counter-guarantee to philippine banks and financial institutions issuing stand-by Letters of Credit or of Letters of Guarantee for the performance of said service contracts;

4. to meet requests from domestic entities, enterprises, and corporations to assist them in the coordination of their development and expansion plans with a view to achieving better utilization of their resources;

5. to provide insurance cover, credit and appropriate services to facilitate the export of philippine goods or services by any entity, enterprise or corporation organized or licensed to engage in business in the philippines;

6. to provide direct credits and loans to exporters of philippine goods and services;

7. to provide technical assistance in the preparation, financing, execution of development or expansion programs, including the formulation of specific project proposals; and

8. to undertake such actions that are consistent with the primary purposes of the corporation.

Capitalization

phileXIM has an authorized capital stock of pl0 billion, fully subscribed by the National Government. the statutory limit on its aggregate outstanding guarantee obligations is fifteen times (15x) its subscribed capital stock plus surplus. All obligations of phileXIM carry the full faith and credit of the Republic of the philippines.


72010 Annual Report

Programs for Small, Medium and Large Exports

phileXIM plays a vital role in helping philippine exporters gain access to international markets and become globally competitive. to assist small, medium and large exporters, as well as priority sectors, phileXIM has various financing products which address credit-related problems such as limited resources, lack of collateral and limited access to facilities and other forms of trade financing.

GuaraNTees

• Guarantee Program for sMes

Guarantees on short term loans of up to p20 million or its equivalent in uS Dollars to direct and indirect exporters, firms involved in priority projects of the government and import substitution industries.

• Guarantee Program for Large accounts

Guarantees on loans to direct and indirect exporters, firms involved in priority projects of the National Government and import substitution industries and guarantees on investments.

• Wholesale Guarantee Program for sMes

Guarantees on existing loan portfolio of financial institutions to direct and indirect SMe exporters with amounts of at least p50 million but not to exceed p200 million per conduit institution.

direCT LeNdiNG

• short-Term direct Lending Program for sMes

Short-term loans of up to p20 million to direct and indirect exporters, firms involved in priority projects of the National Government and import-substitution industries.

• Medium to Long-Term direct Lending Program for sMes

Medium and long term loans of up to p50 million to direct and indirect exporters and firms involved in priority projects of the National Government and import substitution industries.


• Wholesale direct Lending Program for sMes

Wholesale Lending program provides short-term working capital to SMes through conduit financial institutions and export organizations that will, in turn, enable retail lending to exporters and sub-contractors.

• sMe unified Lending Opportunities for National Growth (suLONG)

Lending program by government financial institutions (GFIs) designed to give small and medium enterprises (SMes) greater access to short- and long-term funds.

CrediT iNsuraNCe

• export Credit insurance (eCi)

Insurance coverage to exporters against the risk of non-payment by foreign buyers of export shipments on credit arising from political or commercial risks.

• domestic Credit insurance

Insurance coverage on receivables of a multinational’s subsidiary company against non-payment of buyers in the subsidiary’s country.

PrOGraMs FOr PriOriTY seCTOrs OF THe GOVerNMeNT

Consistent with government’s existing priorities, phileXIM provides guarantee facilities to attract investments particularly in areas where the country has distinct advantages, and where foreign exchange may be generated and/or saved. these strategic sectors are:

1) tourism

2) Information and Communications technology (ICt)

3) Agri-Modernization

4) Infrastructure

5) energy

6) Mining

Tourism-Related Projects

• Type of Project

Hotel, resort, eco-tourism, retirement havens, medical tourism, wellness facilities, sports and leisure complex in priority areas under the Department of tourism’s tourism Development plan

• Nature of requirements

Civil works to include:

– Vertical developments (i.e. buildings & other recreational structures)

– Horizontal developments (i.e. roads, water sewerage, electrical system, telecoms infrastructure)

– other support facilities

Information and Communications Technology (ICT) Projects

• Type of Project

Development of:

– ICt zones (i.e. cyber park or It park dedicated to It locators)

– It-based industries (i.e. software development)

– It-related projects (i.e. call/data centers, backroom processing operations, data recovery and operations)



– Vertical & horizontal developments


92010 Annual Report

– Capital expenditure (e.g. network computer servers and special equipment)

– Acquisition of software packages

Agri-Modernization Projects

• Type of Project

Integrated mechanized farm production and bulk handling facility, oleo chemical facility, grains production and post harvest system



– Vertical/horizontal development

– Installation of electro-mechanical system, capital equipment

electro-mechanical works to include:

– Installation of electro-mechanical system, capital equipment

– Farm machinery & equipment

Infrastructure and Energy Projects

• Type of Project

tollways, ports, airports, bulk water supply, water systems, railway systems, power generation, transmission and distribution, solid waste management, water and wastewater treatment



– Vertical developments (buildings, structures)

– Horizontal developments (rail and road stations, water and telecom infrastructure)

– other support facilities equipment (electro-mechanical system and installation, metallurgical equipments, tolling stock, conveyor equipment)

Mining Projects

• Type of Project:

Mineral ore production and processing

• Nature of requirements:


– Vertical/horizontal development

– other support facilities

– procurement of equipment

Compared to stand-alone projects, where corporations typically resort to commercial borrowings to finance their capital asset acquisition and/or civil works, and where the borrowing costs are normally market rates with tenors such as five (5) years or less, the guarantee facilities offered by phileXIM for projects in the above-mentioned priority sectors provide financing with less than market rates and longer tenors from bilateral and multilateral lending institutions or foreign export credit agencies (eCAs).

this translates to more concessional project terms and conditionsaswellasbettercashflows.Intheend,theprojectbecomes realistically affordable to the end-user and viable in the long-run.

the promotion of the industry sectors mentioned generate more high-value jobs, equitable distribution of economic benefits and a better quality of life for a greater number of Filipinos.


FuLFILLMEnT oF A STRATEgy

PhileXiM’s operations are grounded on a three-point agenda: capital stability, competency and franchise strengthening.

one of phileXIM’s primary goals is to increase productivity which will inspire and spur organizational competency and consolidate and strengthen its unique franchise. In 2010, business relationships, re-alignment of functions, new programs, asset sale and extensive skills training were the central drivers of business strategies.

review of Operations

susTaiNed reVeNue GeNeraTiON

phileXIM produced strong financial results in 2010. Net profit after tax increased by 128% to p332 million (p146 million in 2009) and 26% more than the corporate operating budget (CoB) for the year. total revenues of p501 million came from core business while Net Revenue from Funds (NRFF) totaled p179 million. other income from trading gains and collections from remedial accounts added p129 million more to boost net operating income to p445 million, 22% over the original budget of p365 million.

total assets increased from 2009 due to a rise in Marketable Securities and other Current Assets owing to the pre-termination of the loans receivable of Carmen Copper Corporation of p462 million. the move also freed up the agency’s tight risk asset ceiling. Likewise, Non-Current Loans and Receivables grew by p300 million due to additional claims payment (net of valuation reserves) from other work-out accounts.

the growth dynamic in fund management was a result of maximized investment opportunities and managed cash level. the agency generated actual revenue of p110 million from investment in Government Securities and short-term placements. the Corporation gained p52 million income from its trading activity, the highest since AFS booking for fixed income instruments was adopted in 2008.

Volume targets were also realized by the agency’s revenue generating groups through an Integrated Channel Marketing plan by conducting in-house and regional briefings as well as advice-giving and networking with exporters, banks and trade associations attending trade fairs and exhibits.

From an overall operating perspective, the profitability of the agency is validated by its cost-to-income ratio of 56%, close to the best industry practice of 50%.

aCHieVeMeNT OF addiTiONaL reVeNues FrOM asseT MaNaGeMeNT aNd NON-PerFOrMiNG asseTs disPOsiTiON

In the area of asset management, phileXIM was able to attain a stronger core business portfolio through combined booked income and total recovery on defaulted and


112010 Annual Report

restructured accounts amounting to p99 million and p185 million, respectively. Alternative payment schemes such as restructuring, dacion arrangements, loan takeout and sale of assets were pursued.

deVeLOPMeNTaL iMPaCT ON THe eCONOMY

phileXIM’s various credit facilities for both small and large industries including the priority sectors of the government have considerably contributed to the nation’s development especially in the export industry. For CY 2009-2010, export sales supported by phileXIM’s range of facilities amounted to uS$517.81 million most of which came from guarantees. the agency also helped create 26,750 job opportunities in the skilled and professional fields. phileXIM-assisted firms also made significant contributions to the economy through taxes and licenses paid for CY 2009-2010. A total of p1.34 billion was collected, 261.44% higher from the previous period.

aPPrOVaL OF THe NeW CaPiTaL adequaCY raTiO (Car)

the Monetary Board approved a new CAR framework which was a result of a study conducted by the agency on its unique situation as a non-bank financial institution. By law, all its debts are guaranteed by the national government but it does not have any deposit liabilities. It is allowed to operate at a CAR, defined by BSp, at 3% for 2011 and 5% beginning 2012. this CAR distinguishes itself from the minimum of 10% applicable to banks. A 5% CAR is allowed 20X leverage, indexed to tangible capital and therefore, economically much lower than what is allowed by its charter of up to 15X of subscribed capital or a very high ceiling of p150 billion.

sMe deParTMeNT sPiN-OFF

the re-alignment of SMe Department with the Asset Management Sector has caused more focused transactions on the two core businesses, Large Account and SMe account responsibilities, especially on wholesale financing initiatives, coordination of channels and regional marketing. the offshoot from the reorganization led to a realization of p9 million worth of revenue. under the Corporation’s lending and guarantee programs for SMes, total loan releases and guarantee issuances of p170 million was accounted for.


the unwavering effort of the agency in conducting road shows, bank briefings and major trade exhibits in Metro Manila and other regions to widen its reach paid off as number of new accounts increased. to keep themselves updated on current policies and programs, phileXIM account officers for SMe attended meetings hosted by the SuLoNG Finance Committee and the export Development Council.

OPeraTiNG eFFiCieNCY

Operations on two agency-owned floors at CitibankCenter were relocated to one floor at the Citibanktower to generate liquidity by putting the unoccupied space up for sale. the move not only sought to bring about additional investment ceiling but also to improvetransactionflows.PhilEXIM’swarehouseinSanFernando, pampanga served as a Business Continuity and Disaster Recovery Site where archives and back-up records reside. the Multi-purpose Hall located at the Citibank Center, still considered a serviceable asset and suitable for conferences and seminars, generated a total of p3.39 million income from rentals. Relative to the transfer of operations to the 17thfloorofCitibankTower,phileXIM was able to maximize employees’ capabilities and resources while integrating and harmonizing frontline and backroom processes.

Loan operations used to be manually driven were converted to state-of-the-art automated back end system and rolled out the trade and Finance Loan System (tFLS). By enabling computerization, manpower requirement was reduced by 67% in loans operations and the excess redeployed to frontline departments. Similarly, to enhance integration of operations for financial and management accounting, the implementation of the Financial Information System (FIS) was pursued. the

Corporation has continuously been implementing the Disaster Recovery/Business Continuity plan through regular back ups on its systems - FIS, HRIS, tFLS and file server.

Career eNHaNCeMeNT aNd re-aLiGNMeNT OF FuNCTiONs

With the end view of increasing capacity without adding to the existing headcount, a Job evaluation (Je) project was initiated, result of which was highlighted with the implementation of the organizational empowerment plan (oep). the plan aims to create a middle management echelon that is empowered to drive decisions across operating units and increase production and absorption capacity for additional investments. this initiative not only resulted in new job leveling and classification within the Corporation, but also deepens the supervisory bench and enhances succession planning. A newly minted batch of graduates from the company’s elite Management Development program has been deployed to man critical gaps in operations. to fill in the Je project, a new manual on signing authorities was also implemented.Alloperatingmanualsandflowchartsofevery operating unit have been updated and revised.

Moreover, phileXIM strives to provide employees with the skills, opportunities and experience they need to enhance their career and perform to their greatest potential. With the realigned functions of Fund Management, Credit, Risk Management and Corporate planning and Communications departments/units as approved by the Board, it resulted to promotion of 23 deserving and well-experienced personnel. An incentive scheme to provide rewards based on merit and contribution to revenue earning departments as well as support groups was also implemented.



As part of phileXIM’s continuing effort to attract, retain and motivate its people, participation to a total of 53 local and foreign trainings were approved. this was a marked increase of 23% in training interventions to various officers, staff and departments compared to CY 2009.

sTrONG LiNkaGes aNd NeTWOrkiNG

phileXIM maintained ties with its eXIM bank counterparts through membership in the Asian exim Banks Forum (AeBF) and the Association of Development Financing Institutions in Asia and the pacific (ADFIAp) and attends its seminars and conferences on an annual basis. In September 2010 phileXIM was one of the signatories to the endorsement Letter of Reciprocal Risk participation Agreement and AeBF Membership protocol during the 16th Annual Meeting of AeBF in Korea. phileXIM also hosted visiting tours from both foreign and local peer organizations and in December 2010 it organized and hosted the Study Visit of the Vietnam Development Bank and the ADFIAp Development Bank Management program.

sTreNGTHeNiNG risk MaNaGeMeNT

to maintain the balance with the agency’s efforts in revenue production is the strengthening of its risk management framework. In line with this strategy, phileXIM’s Risk Management Group completed the various components of the Risk Management Manual. It also initiated the drafting of the chapter on Capital Adequacy Ratio (CAR) Management based on phileXIM CAR per BSp approval. It facilitated the review and updating of the Manual of operations (Moo) of all departments which led to the creation of an Moo Committee.

the Business Continuity plan (BCp) was also put in place which led to the reconstitution of the BCp Committee to align with the approved changes in the organization and the subsequent dissemination of the approved BCp Manual to all departments. phileXIM’s ISo 9001 QMSCertificationDataSheet that reflected its currentstatus on the implementation of the Government Quality Management System Standards (GQMSS) pursuant to eo 605 (Institutionalizing the Structure, Mechanisms and Standards to implement the Government Quality Management program) was submitted to the Department of Finance (DoF).

Also, in line with institutionalizing and streamlining the flowofthecreditreviewprocess,theInternalAuditOffice(IAo) came up with standard credit review guidelines and updated its manual.

diVideNd deCLaraTiON

For yet another milestone, phileXIM has declared a cash dividend of p216 Million, out of which p150 Million was paid, the biggest compared to the combined total of p53 million paid in four (4) separate years since inception. this is in support of the present administration’s campaign to draw funding from its wholly owned entities as part of good governance and also to help in easing the national budget deficit.

Highlights of 2010

1st Quarter Ü ASEAn Workshop on “Sharing of

Best Practices on the Establishment of SME Financial Facility” held in Brunei Darussalam

Ü 9th Philfoodex Exhibit at Megatrade Hall

Ü Plant visit at Philippine Phosphate Fertilizer Corporation

Ü Meeting with representatives of Land Bank of the Philippines Tacloban Lending Center

Ü operationalization of the Trade Finance and Loans System (TFLS)- automating critical processes in the loan documentation phase of account management

3rd Quarter Ü Briefing of delegates as part of

ADFiAP’s Asia Pacific institute for Development Finance (iDF) Study Tour Program in coordination with Japan international Cooperation Agency (JiCA), Japan Economic Research institute (JERi) and the Vietnam Development Bank (VDB)

Ü 16th Annual Meeting of the Asian Exim Banks Forum and the 15th AEBF Workshop held in Busan, Korea

2nd QuarterÜ Site inspection at Carmen Copper

Corporation

Ü Plant visits at Phoenix Petroleum Phil., Royal Mandaya Hotel and at global green Power PLC Corporation

Ü 3rd CouRAgE sponsored government Employees Sports Fests, “CouRAgE CHAMPionS”, at the Rizal Memorial Sports Complex, Manila

Ü in-house Seminar on Mortgage Trust indenture

Ü Voters' Education Seminar and Mock Election preparatory to the May 2010 Presidential Elections held at the PhilEXiM Multi Purpose Hall

Ü 13th Training Program of the Asian Eximbanks Forum entitled “Risk Management - A Practical Approach", held in KL, Malaysia

Ü 14th Asian Eximbanks Forum Training Program on Environment Related operations and Project Analysis held in Seoul, South Korea

4th Quarter

Ü Briefing on PhilEXiM’s programs for the Tourism industry Players of Bohol Tourist Services Multi- Purpose Cooperative for its Wholesale Lending Program

Ü Site inspections at Alliance Select Foods international, inc. and Marsman Drysdale Agri-business Holdings. inc.

Ü Presentation of PhilEXiM’s products to tourist inns in cooperation with the Tourism Department of the City government of Puerto Princesa led by Mayor Edward Hagedorn

Ü Signing Agreement with First gen Corporation and BDo on issuance of Commercial Papers for Hydropower Project Expansion

Ü Christmas outreach activity at the Center for Health improvement and Life Development (CHiLD Haus)

Ü ADFiAP Developement Bank Management Program delegates visit to PhilEXiM






the year 2010 was a banner period for the Corporation not only in terms of profits and revenue projections but it also continued to imbibe a sense of

social responsibility towards its employees—its internal stakeholders.

Corporate social responsibility

paper in the production of its Annual Report. All of these efforts were made to minimize phileXIM’s carbon footprint in the workplace.

VOLuNTeerisM

Year after year, the opportunity for phileXIM working men and women to return their good yields after hard work and dedicated service comes in the form of charitable endeavors by helping the institutions of the less fortunate or differently-abled.

on December 17, 2010, representatives from the various departments and offices of phlieXIM raised their sense of charity a bar higher as some 160 children and their families were the beneficiaries of this year’s employee relations activity via a feeding program at the CHILD Haus (Center for Health Improvement and Life Development). CHILD Haus is an ongoing project that provides temporary shelter for cancer and disease-stricken children from the provinces who have no place to stay in Metro Manila while undergoing medical evaluation or treatment.

the Human Resource Department spearheaded the activity in cooperation with the representatives from each department/office. president Francisco S. Magsajo, Jr. and other senior officers were also on hand to lead the feeding campaign. the occasion was highlighted by the distribution of toys to the children and grocery packs to their respective families staying at the facility. As a token of appreciation, the children serenaded the guests while Dr. erwin estimo, medical officer at CHILD Haus, thanked the donors for their charitable endeavors.

eCO-eFFiCieNCY iN THe WOrkPLaCe

eco-efficiency is ever more becoming a means for success in business. the World Business Council for Sustainable Development describes eco-efficiency as a management strategy of doing more with less. It is practically attained by 1) Increasing product or service value 2) optimizing the use of resources and 3) Reducing environmental impact.

Because of the latitude for cost savings related to each of these goals, focusing on them makes good business judgment. For its part, phileXIM Management had started initiating concrete measures to do “more with less”.

the decision to relocate phileXIM’s operations from two company-ownedfloorsatCitibankCenter toonefloorat Citibank tower has consequently improved internal transactions due to proximity between departments and reduced overhead costs as well. the company had also promoted the merit of recycling and revived the practice of reusing paper originally printed for inter-office memoranda and other documents. energy conservation was also being observed by each and every employee by turning off the lights and individual computers during lunch break. the company continually use recycled


AudIT CoMMITTEE

Ü Chairman Jose F. Santos Vice: Augusto B. Santos 1

Ü Members Armando L. Suratos Paterno H. Dizon 2

Margarita R. Songco 3

Jose F. Santos 4

Rodolfo g. Serrano, Jr. 5

CREdIT CoMMITTEE

Ü Chairman Francisco S. Magsajo, Jr.

Ü Members Jose F. Santos Proceso T. Domingo 6

Armando L. Suratos Roberto B. Tan Cristino L. Panlilio 7

Rodolfo g. Serrano, Jr. Augusto B. Santos

CoRPoRATE govERnAnCE CoMMITTEE

Ü Chairman Paterno H. Dizon Vice: Rodolfo G. Serrano, Jr.

Ü Members Francisco S. Magsajo, Jr. Roberto B. Tan Jose F. Santos Margarita R. Songco Proceso T. Domingo Augusto B. Santos

RISk ovERSIghT CoMMITTEE

Ü Chairman Margarita R. Songco Vice: Augusto B. Santos

Ü Members Francisco S. Magsajo, Jr. Armando L. Suratos

iNCLusiVe PeriOds

1 January-July 2010 5 January-June 2010

2 July-December 2010 6 January-August 2010

3 August-December 2010 7 August-December 2010

4 January-August 2010

audiT COMMiTTee*

Installs and ensures the full operationalization of a proper and adequate control system that guarantees reliability of reporting, safeguarding of assets, compliance with rules and regulations on financial and related matters as well as effectiveness and efficiency of operations.

CrediT COMMiTTee*

Approves credit transactions of up to p100 million and pre-approves all credit transactions beyond p100 million before presentation for approval by the Board of Directors.

COrPOraTe GOVerNaNCe COMMiTTee**

oversees phileXIM’s compliance efforts with respect to the Code of Corporate Governance, Code of ethics, and related laws, rules and regulations as well as company policies and procedure; and keeps abreast of the developments in the field of corporate governance that might affect phileXIM.

risk OVersiGHT COMMiTTee (rOC)***

Assists the Board in directing the affairs of the Corporation particularly in the development and oversight of the Corporation’s risk management plan and program. It also assists the Board in assessing and providing oversight to management relating to the identification and evaluation of major risks involved in the Corporation’s business operations or any other areas that could create significant risks to the Corporation’s results of operations, reputation or capacity to fulfill its mandate.

* Meets monthly.** Meets every other month.*** Meets quarterly.

PhileXiM’s Board-level Committees continued to perform its functions to strengthen corporate governance. It actively supports the Corporation in its endeavor to position itself as a reputable credit agency and partner in development.

Board Level Committees 2010



the Management of the philippine export-Import Credit Agency (phileXIM) is responsible for all information and representations as stated in the financial statements as of December 31, 2010. the financial statements have been prepared in conformity with the accounting and financial standards generally accepted in the philippines, and reflectamounts thatarebasedon thebestestimatesandinformedjudgmentofManagementwithanappropriateconsideration to materiality.

In this regard, Management maintains a system of accounting and reporting which provides for the necessary internal controls to ensure that transactions are properly authorized and recorded, assets are safeguarded against unauthorized use or disposition, and liabilities are recognized.

the Board of Directors of the Corporation reviews the consolidated financial statements before such are given the final approval consideration.

the Commission on Audit has examined the consolidated financial statements of the Corporation in accordance with generally accepted state auditing standards and has expressed its opinion on the fairness of presentation upon completion of such audits in its report to the Board of Directors.

MariLOu a. MediNaSenior Vice president

Finance Services Sector

statement of Management'sresponsibility for Financial statements

FraNCisCO s. MaGsaJO, Jr.president

& Chief executive officer

rOBerTO B. TaNAlternate ChairmanBoard of Directors


The Board of directorstrade and Investment Development Corporation of the philippines philippine export-Import Credit Agency Makati City

We have audited the accompanying financial statements of trade and Investment Development Corporation of the philippines (tIDCoRp) also known as philippine export-Import Credit Agency (phileXIM), which comprise the statement of financial position as atDecember31,2010,andthestatementofcomprehensiveincome,statementofchangesinequityandstatementofcashflowsfor the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s responsibility for the Financial statementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with philippine Financial Reporting Standards, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

auditor’s responsibilityour responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. the procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Basis for qualified OpinionAs discussed in item no. 1 of the observations and Recommendations portion of the audit report, obligations of p829.463 million representing amortizations due from defaulted guaranteed loans assumed by the Corporation were not recognized as of December 31, 2010 and impairment losses of p361.883 million on related receivables were not adequately provided, contrary to the requirements of pAS 37 and pAS 39, respectively.

OpinionIn our opinion, except for the effects of the matter described in the Basis for Qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2010, and its financial performanceanditscashflowsfortheyearthenendedinaccordancewithPhilippineFinancialReportingStandards.

COMMissiON ON audiT

TeOdOra M. LaCerNaSupervising Auditor

May 5, 2011

republic of the PhilippinesCommission on audit

Commonwealth Avenue, Quezon City

state auditor's reporton the Financial statements



Balance sheetFor the Year ended December 31, 2010(in PhiliPPine Peso)

as restated Note 2010 2009

asseTs

CurreNT asseTsCash and cash equivalents 3 535,599,533 40,050,042 Financial investments - available for sale 4 1,697,143,676 1,537,955,979 Loans and receivables 5 331,369,076 817,420,876 other assets 6 26,108,832 16,802,843

2,590,221,117 2,412,229,740

NON-CurreNT asseTsLoans and receivables, net 5 496,924,848 196,998,940 Investment property, net 7 96,722,702 60,799,127 property and equipment - net 8 104,488,021 152,385,912 other assets 6 30,405,871 34,001,120

728,541,442 444,185,099

TOTaL asseTs 3,318,762,559 2,856,414,839

LiaBiLiTies

CurreNT LiaBiLiTiesAccounts payable 9 39,285,520 293,654,906 Loans payable 10 2,200,000,000 1,800,000,000 Interest payable 11 12,117,610 13,636,129 Accrued expenses 12 9,121,656 8,650,452 Income tax payable 13 3,263,959 1,383,094 unearned income 14 34,489,608 69,651,677 Miscellaneous payables 15 41,854,645 47,912,637

2,340,132,998 2,234,888,895

NON-CurreNT LiaBiLiTiesunearned Income 14 5,586,420 5,308,455

TOTaL LiaBiLiTies 2,345,719,418 2,240,197,350

equiTY 16 973,043,141 616,217,489

TOTaL equiTY and LiaBiLiTies 3,318,762,559 2,856,414,839

CONTiNGeNT LiaBiLiTiesGuarantees outstanding 17 13,954,914,439 13,183,617,356

CONTiNGeNT aCCOuNT - OTHersitems Held as Collateral 18 337 335

See accompanying notes to Financial Statements


statement of Comprehensive incomeFor the Year ended December 31, 2010(in PhiliPPine Peso)

as restated

Note 2010 2009

revenueOperating income

Guarantee, commitment and processing fees 361,963,134 288,987,202 Interest and penalties 19.1 203,964,167 56,479,054 Interest on investments and deposits 19 110,721,332 124,900,987 Gain on sale of investment 19.2 52,062,050 21,984,404 Gain on sale of acquired assets 2,012,605 13,312,510 Insurance premium and commission 2,262,364 697,674 Miscellaneous income 19.4 66,057,387 9,481,984

Other incomeForeign exchange gains 19.3 433,885 20,053,694 Gain on sale of equipment 64,249 75,944

799,541,173 535,973,453 expenses

Operating expensepersonal services 122,273,254 117,568,253 provision for doubtful accounts 90,308,078 100,000,000 Licenses and taxes 31,289,366 24,793,834 Depreciation expense 12,004,611 11,519,200 Rent, light and water 11,884,343 9,794,184 Impairment loss 9,691,922 - other services 7,833,578 6,999,681 Audit fees and services 2,419,212 2,052,991 Administration expense 2,257,690 4,411,255 Communication expense 2,166,934 3,754,533 Business development expense 1,917,500 3,043,134 Representation expense 1,631,851 1,822,167 Legal fees and other services 1,400,499 459,349 Insurance 1,290,515 1,117,832 Staff training and development 1,248,671 671,952 Dues and subscription 984,781 992,743 travelling expense 966,120 1,281,025 Impairment loss - property & equipment 878,410 617,970 Discretionary expense 856,043 740,635 Supplies and materials 843,908 931,230 Fuel, oil and lubricants 830,833 601,479 Consultancy expense 664,275 2,586,991 Repairs and maintenance 397,201 215,580 Semi-expendable expense 194,753 73,438 Advertising and promotions 12,717 - Miscellaneous expense 740,589 203,875

306,987,654 296,253,331 Other expense

Interest and financial charges 20 137,936,650 70,574,045 444,924,304 366,827,376

Net income before final tax 354,616,869 169,146,077 Final tax 21 22,141,391 22,573,966

Net income 332,475,478 146,572,111 Other comprehensive gain (loss)

unrealized gains (losses) on available for sale investment 24,350,174 (32,942,647)

Total comprehensive income for the year 356,825,652 113,629,464




statement of Cash FlowsFor the Year ended December 31, 2010(in PhiliPPine Peso)

as restated

2010 2009

CasH FLOWs FrOM OPeraTiNG aCTiViTiesGuarantee, interest and premium receipts 482,203,658 321,938,325 Miscellaneous income 304,988,824 234,980,625 Reinsurance premiums (1,256,043) (5,141,530)Cash payments to employees and suppliers (118,093,612) (104,252,157)

(Increase) decrease in operating assets:Loan releases and claims payment under the guarantee program (161,224,920) (1,351,462,225)Collection of miscellaneous and other receivables 444,190 1,188,395

Increase (decrease) in operating liabilities:Deposits from customers and contractors 29,138,634 22,212,990 payment to clients/government agencies (126,324,993) (124,280,271)Net cash provided by/(used in) operating activities 409,875,738 (1,004,815,848)

CasH FLOWs FrOM iNVesTiNG aCTiViTiesNet placements/proceeds of matured securities (171,440,472) 361,689,945 Sale of property and equipment 1,019,161 439,089 purchase of property and equipment (8,654,753) (16,781,474)Net cash provided by/(used in) investing activities (179,076,064) 345,347,560

CasH FLOWs FrOM FiNaNCiNG aCTiViTiesCorporate borrowings 871,180,000 700,000,000 Guarantee fee due to the National Government (6,235,701) - Lenders representing amortization of borrowings (471,180,000) - proceeds from net lending from the National Government - 180,733,116 payment of net lending from the National Government - (180,733,116)payment to lenders for interest and financial charges (128,590,985) (71,378,993)Net cash provided by financing activities 265,173,314 628,621,007

effect of exchange rate changes on cash on hand and in banks (423,497) 20,053,694

Net increase/(decrease) in cash on hand and in banks 495,549,491 (10,793,587)Cash and cash equivalents at beginning of period 40,050,042 50,843,629 CasH aNd CasH equiVaLeNTs aT eNd OF PeriOd 535,599,533 40,050,042



statement of Changes in equityFor the Year ended December 31, 2010(in PhiliPPine Peso)

Capitalstock deficit

Other Comprehensive income (Loss) Total

Note 16 16.2 16.3

Balance, January 1, 2009 4,891,899,438 (4,397,680,436) 8,369,023 502,588,025 Decrease in fair value adjustment (32,942,647) (32,942,647)Net income as restated 146,572,111 146,572,111 Balance, december 31, 2009 as restated 4,891,899,438 (4,251,108,325) (24,573,624) 616,217,489

Increase in fair value adjustment 24,350,174 24,350,174 Net income 332,475,478 332,475,478 Balance, december 31, 2010 4,891,899,438 (3,918,632,847) (223,450) 973,043,141




Notes to Financial Statements(all amounts in PhiliPPine Peso unless otherwise stated)

1. COrPOraTe iNFOrMaTiON

the trade and Investment Development Corporation of the philippines (tIDCoRp), formerly known as the philippine export and Foreign Loan Guarantee Corporation (pHILGuARANtee), is a wholly-owned government financial institution attached to the Department of Finance. established on January 31, 1977 by virtue of presidential Decree No. 1080, the Corporation was renamed tIDCoRp and granted expanded functions by Republic Act No. 8494 on February 12, 1998. to strengthen its role in the development and expansion of international trade as well as to effectively respond to the economic requirements of the country, tIDCoRp was designated as the philippine export-Import Credit Agency by virtue of executive order No. 85 on March 18, 2002. the address of its registered office is 17th Floor Citibank tower, Citibank plaza, Valero St. Makati City.

tIDCoRp’s corporate objective is to contribute to the country’s economic development as the philippine export-Import Credit Agency providing guarantees, credits, insurance and technical assistance services. Its mission is to stimulate, increase and develop the export of goods and services by assuring speedy and unobstructed access to trade finance for viable exporters, especially the small and medium enterprises and to help generate employment in the export sector. Moreover, its programs and services also aim to support projects in priority areas of the National Government where the country has distinct advantage and where foreign exchange may be generated and/or saved.

under Republic Act No. 8494, tIDCoRp’s expanded functions are the following:

• to promote and facilitate the entry of foreign loans into the country for development purposes having special regard to the needs of export-oriented industries, industries registered with the Board of Investments, public utilities, and industries the promotion of which is encouraged by government policy;

• to guarantee loans granted by philippine banking and financial institutions to qualified exporters, producers of export products, and contractors with approved service contracts abroad;

• to facilitate and assist in the implementation of approved service contracts abroad entered into by philippine entities, enterprises, or corporations with foreign exchange earning potentials, by providing counter-guarantees to philippine banks and financial institutions issuing stand-by Letters of Credit or of Letters of Guarantee for the performance of said service contracts;

• to meet requests from domestic entities, enterprises, and corporations to assist them in the coordination of their development and expansion plans with a view to achieving better utilization of their resources;

• to provide technical assistance in the preparation, financing and execution of development or expansion of programs, including the formulation of specific project proposals; and

• to undertake such actions that is consistent with the primary purposes of the Corporation.

2. aCCOuNTiNG POLiCies

the principal accounting policies adopted in preparing the financial statements of the Corporation are as follows:

2.1 Basis of preparation

the accompanying financial statements of tIDCoRp for the year ended December 31, 2010 have been prepared by applying accounting policies in accordance with the philippine Financial Reporting Standards (pFRS), philippine Accounting Standards (pAS) and applicable rules and regulations of the Bangko Sentral ng pilipinas (BSp), to achieve a fair presentation of the financial statements.

tIDCoRp is a going concern entity which financial statements have been prepared on accrual basis, except when stated otherwise, and in accordance with the historical cost convention. the presentation and classification of item in the financial statements is consistent with the previous year.

Comparative information has been presented in respect of the previous period for all amounts reported in the financial statements.

the financial statements for the year ended December 31, 2010 were authorized for issue in acceptance with a resolution of the board of directors on January 26, 2011.

2.2 adoption of the Philippine Financial reporting standards (PFrs)/Philippine accounting standards (Pas)

under the philippine Accounting Standards (pAS) 1, financial statements shall not be described as complying with philippine Financial Reporting Standards (pFRS)/pAS unless they comply with all the requirements of pFRS. the tIDCoRp’s financial statements have been prepared in compliance with some, but not all, pFRS and pAS as aligned with the provisions of the International Financial Reporting Standards (IFRS). References to the preparation of these statements in accordance with the pFRS/pAS should be viewed with this qualification and related disclosures. the tIDCoRp has adopted the applicable pFRS/pAS consistent with those of the previous financial years and compliance thereto mentioned in the specific accounts where applicable.

In accordance with pAS 1 (Revised 2009), Presentation of Financial Statements (effective January 1, 2009), an entity is required to present all items of income and expense recognized in the period in a single statement of comprehensive income or in two statements: a separate income statement and a statement of comprehensive income. the income statement shall disclose income and expense recognized in profit and loss in the same way as the current version of pAS 1. the statement of comprehensive income shall disclose profit or loss for the period, plus each component of income and expense recognized outside of profit and loss classified by nature (e.g. gains or losses on available-for-sale assets). Changes in equity arising from transactions with owners are excluded from the statement of comprehensive income (e.g. dividends and capital increase). An entity would also be required to include in its set of financial statements a statement showing its financial position (or balance sheet) at the beginning of the previous period when the entity retrospectively applies an accounting policy or makes a retrospective restatement.

pAS 21 - provides that unrealized gains and losses due to change in exchange rates/prices regardless of classification of assets are recognized under the income statement. tIDCoRp recognized unrealized gains and losses in accordance with Section 45 of R. A. 7653. the realized gains and losses are recognized in the income statement under pAS 21.

unless otherwise stated, the CY 2010 balances are prepared under the historical cost convention and/or applicable pFRS/pAS.

pAS 8 – Accounting policies, Changes in Accounting estimates and errors, removes the concept of fundamental error and allowed alternative to retrospective statement to correct prior period errors. It defines material omissions or misstatements and describes how to apply the concepts of materiality when applying accounting policies and correcting errors.

pAS 10 – events after Balance Sheet date prescribes the accounting policies and disclosures related to adjusting and non-adjusting subsequent events. Additional disclosures required by the standards were included in the financial statements, principally the date of authorization for release of the financial statements.

pAS 16 – property, plant and equipment provides additional guidance and clarification on recognition and measurement of items of property, plant and equipment with a cost that is significant in relation with the total cost of the item shall be depreciated separately.

pAS 36 – Impairment of Assets which prescribes the procedures that an entity applies to ensure that its assets are carried at no more than its recoverable amount; requires recognition of impairment losses and reversal of this; and prescribe disclosures.

pAS 37 – provisions, Contingent Liabilities and Contingent Assets ensures that appropriate recognition and measurement bases are applied to provisions, contingent liabilities and contingent assets and significant information is disclosed.


pAS 39 – Financial Instruments: Recognition and Measurements. Financial assets and financial liabilities are recognized on the Corporation’s balance sheet when the Corporation becomes a party to the contractual provisions of the instrument.

pAS 40 – Investment property states that a property interest that is held by a lessee under an operating lease may be classified and accounted for as investment property if the recognition criteria are met.

2.3 significant accounting judgments and estimates

In the process of applying the Corporation’s accounting policies, Management has used its judgment and made estimates in determining the amounts recognized in the financial statements. the most significant use of judgments and estimates are as follows:

a. impairment losses on loans, advances and contingent liabilities

the Corporation reviews its problem loans, advances and contingent liabilities at each reporting date to assess whether an allowance for impairment should be recorded in the income statement. In particular, judgment by Management is required in the estimationof amount and timingof future cash flowswhendetermining the level of allowance required. Guided by BSp rules and regulations, such estimates are based on assumptions about a number of factors and actual results may differ, resulting in future changes to the allowance.

2.4 Changes in accounting Policies

the accounting policies adopted are consistent with those of the previous financial year.

the Corporation adopted in CY 2007 the prescribed policy on Loans and Receivables which should be measured at amortized cost using the effective interest method in accordance with pAS 39.

2.5 summary of significant accounting Policies

a. Property and equipment

property and equipment (pe) includes office space, transportation and office equipment. All pes are shown at cost less accumulated depreciation and accumulated impairment losses. CoA Circular 2005-002 dated April 14, 2005 entitled “Accounting policy on items with serviceable life of more than one year but small enough to be considered as property, plant and equipment” sets the policy by which government assets may be categorized as property and equipment and as Inventories.

Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefitsassociatedwiththeitemwillflowtotheCorporationandthecostoftheitem can be measured reliably. All other repairs and maintenance are recognized in the income statement during the period in which they are incurred.

Depreciation on asset is calculated using the straight-line method to allocate the cost of the asset net of residual value of ten per cent of cost over its estimated useful life as prescribed by CoA Circular 2003-007 “Revised estimated useful life in computing depreciation for government property, plant and equipment”. the circular was issued to provide policies and guidelines on the computation of depreciation of government property, plant and equipment and to provide useful lives, as follows:

• Buildings 10-30 years• office equipment, furniture & fixtures 5-10 years• transportation equipment 7-10 years• other property, plant & equipment 5 years

Depreciation is charged to operations on the month following the date of purchase.

Major repairs/renovations are depreciated over the remaining useful life of the related asset. the assets’ useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

At each balance sheet date, the Corporation reviews the carrying amount of its tangible assets to determine whether there are any indicators of impairment. If indicators of impairment exist then the recoverable amount of an asset is estimated. If the recoverable amount of an asset is less than its carrying amount, the difference is recognized in the income statement as an impairment loss.

An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognized in the income statement in the year of derecognition.

the effect of a change in accounting estimates shall be recognized prospectively by including it in profit or loss in the period of the change, if the change affects that period only; or in the period of the change and future periods, if the change affects both.

to the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of equity, it shall be recognized by adjusting the carrying amount of the related asset, liability or equity item in the period of change.

An entity shall disclose the nature and amount of a change in an accounting estimate that has an effect in the current period or is expected to have an effect in future periods, except for the disclosure of the effect on future periods when it is impracticable to estimate that effect.

If the amount of the effect in future periods is not disclosed because estimating it is impracticable, an entity shall disclose the fact.

b. investment Property

Investment property is property (land or a building or part of a building or both) held (by the owner or by the lessee under a finance lease) to earn rentals or for capital appreciation or both.

b.1 investment Property – Building

Investment property (Ip) includes office space not used in operations. Investment property shall be recognized as an asset when it is probable that the future economicbenefitsthatareassociatedwiththeinvestmentpropertywillflowtothe entity and the cost of the investment property can be measured reliably. Ip is held to earn rentals or for capital appreciation or both.

An investment property is initially recorded at cost, which includes transaction costs. It is subsequently measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation on asset is calculated using the straight-line method to allocate the cost of the assets net of residual value of ten per cent of cost over its estimated useful life.

transfer to, or from, investment property shall be made when, and only when, there is a change in use, evidenced by:

• commencement of owner-occupation, for a transfer from investment property to owner-occupied property;

• commencement of development with a view to sale, for a transfer from investment property to inventories;

• end of owner-occupation, for a transfer from owner-occupied property to investment property;

• commencement of an operating lease to another party, for a transfer from inventories to investment property;

• end of construction or development, for a transfer from property in the course of construction or development to investment property.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the period of the retirement or disposal.


b.2. investment Property – acquired assets/real and Other Properties acquired (rOPa)

this refers to the real and other properties acquired in settlement of loans and receivables under the Direct Lending and Guarantee programs, through foreclosure or dacion in payment. RopA are booked initially at the carrying amount of the loan (i.e., outstanding loan balance less allowance for credit losses) plus booked accrued interest less allowance for credit losses, plus transaction costs incurred upon acquisition (such as non-refundable capital gains tax and documentary stamp tax paid in connection with the foreclosure/purchase of the acquired real estate property). Maintenance and other carrying costs subsequent to the foreclosure or acquisition of such property are taken up as expenses. Realized gain on sale thereof is credited to income.

pursuant to the BSp Circular No. 520 dated March 20, 2006, tIDCoRp adopted the following policies in accounting for RopA (see Note 2.2): • Land and buildings are accounted for using the cost model under pAS 40

“Investment property”;

• other non-financial assets shall be accounted for using the cost model under pAS 16 “property, plant and equipment”;

• Buildings and other non-financial assets are depreciated over the remaining useful life of the assets, which shall not exceed ten years and three years from the date of acquisition, respectively; and

• Land, buildings and other non-financial assets shall be subject to the impairment provisions of pAS 36 “Impairment”.

the appraisal of all RopA is made at least every other year to determine whether impairment exists. Immediate re-appraisal is conducted on RopA which materially decline in value.

If the recoverable amount/appraised value of RopA is less than its carrying amount; the difference is recognized in the income statement as provision for probable losses (impairment) – RopA.

Investment property (Ip) includes office space not used in operations. Investment property shall be recognized as an asset when it is probable that the future economicbenefitsthatareassociatedwiththeinvestmentpropertywillflowtothe entity and the cost of the investment property can be measured reliably. Ip is held to earn rentals or for capital appreciation or both.

An investment property is initially recorded at cost, which includes transaction costs. It is subsequently measured at cost less accumulated depreciation and accumulated impairment losses. Depreciation on asset is calculated using the straight-line method to allocate the cost of the assets net of residual value of ten per cent of cost over its estimated useful life.

transfer to, or from, investment property shall be made when, and only when, there is a change in use, evidenced by:

• commencement of owner-occupation, for a transfer from investment property to owner-occupied property;

• commencement of development with a view to sale, for a transfer from investment property to inventories;

• end of owner-occupation, for a transfer from owner-occupied property to investment property;

• commencement of an operating lease to another party, for a transfer from inventories to investment property;

• end of construction or development, for a transfer from property in the course of construction or development to investment property.

An investment property is derecognized upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the period of the retirement or disposal.

c. Financial instruments

the classification of financial instruments at initial recognition depends on the purpose for which the financial instruments were acquired and their characteristics.

c.1 due from banks and loans and receivables

“Due from banks” and “Loans and receivables” are financial assets with fixed or determinable payments and fixed maturities that are not quoted in an active market. they are not entered into with the intention of immediate or short-term resale and are not classified as ‘Financial assets held for trading, designated as “Financial investment – available-for-sale” or “financial assets designated at fair value through profit or loss”. “Loans and Receivables” are measured at amortized cost using the effective interest method. those with maturities in less than one year are included in the current assets, and those with maturities greater than 12 months after the balance sheet date are classified as non-current assets.

c.2 available for sale (aFs) investments

Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale that the Corporation’s management purchased and held indefinitely and will be available to be sold when the need for liquid funds arises during operating cycle.

unrealized gains or losses of AFS shall be included directly in equity and shown in the statement of changes in equity.

those available-for-sale financial assets may be included in the current assets and non-current assets. these financial assets are classified as non-current assets unless the intention is to dispose such assets within 12 months from the balance sheet date.

d. impairment of assets

Assets that are subject to amortization are tested for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. the recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Impairment losses are recognized in the income statement in the period in which they were incurred.

Starting January 01, 2005 tIDCoRp’s property and equipment were carried at cost less any accumulated depreciation and accumulated impairment losses. As of balance sheet date, review of the carrying amount of tIDCoRp’s property and equipment indicated impairment for some items. Hence, recoverable amount for these assets were estimated. the impairment loss was properly recognized in the income statement.

e. Foreign Currency-denominated Monetary assets

the Corporation’s accounting for foreign currency-denominated monetary assets is guided by pAS/IAS 21 “the effects of Changes in Foreign exchange Rates” which was adopted effective January 01, 2005. Actual foreign currency transactions are recorded initially based on prevailing rate/spot rate as of transaction date. these accounts are translated/ converted into philippine peso using the philippine Dealing System Weighted Average Rate (pDSWAR)/closing rate as of Balance Sheet date. Foreign exchange differences arising from the settlement of monetary items or on translation of monetary items are recognized in the income statement in the period in which they arise.

f. Provident Fund

tIDCoRp has a provident Fund for the benefit of its employees. the contributions made to the Fund are recognized in the income statement in the period they arise at the following rates:

f.1 employer’s share at 25% of basic salary and;

f.2 employee’s share at 5% of basic salary



g. recognition of income

Revenueisrecognizedwhenitisprobablethattheeconomicbenefitswillflowtothe Corporation and the revenues can be reliably measured.

g.1 income from Guarantee Operations

Guarantee fees are collected in advance upon issuance of the guarantee and periodically thereafter, based on outstanding guaranteed loan. the accounting treatment for guarantee fee income follows the accrual basis. Guarantee fees collected in advance are charged to unearned Income and is distributed/amortized over the period covered by the guarantee fee.

Commitment fees are collected in advance upon issuance of the guarantee based on the undrawn balances of guaranteed loan. the accounting treatment for commitment fees is the same as that of the guarantee fee income. processing fees are recognized upon collection.

Interest and penalties due to delay in the payment of guarantee fees and advances are recognized as income upon collection.

g.2 income from direct Lending Operations

Interest and similar income derived from financial instruments measured at amortized cost and interest bearing financial instruments is recorded at the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset.

Interest income, processing fees and penalties due on delayed payment are recognized upon collection.

g.3 income from insurance Operations

Insurance premium is recognized as income at gross upon the effectivity of the policy. the corresponding reinsurance costs and broker’s commission are deducted from gross insurance revenues. tIDCoRp’s commission income is immediately recognized and offset against premiums due to the reinsurer.

h. Cash and cash equivalents

Cashandcashequivalentsasreferredtointhecashflowstatementcomprisescash on hand, current accounts and amounts due from banks on demand or with original maturity of three months or less.

i. Provisions

provisions are recognized when the Corporation has a present obligation (legal orconstructive)asaresultofapastevent,anditisprobablethatanoutflowofresources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. the Corporation periodically reviews the quality of its real and contingent exposures in loans, other receivables and outstanding guarantees portfolio and estimates probable losses due to payment defaults, insolvency of the debtor, decline in the value of collaterals and other related factors that would render the debtor incapable of meeting financial obligations.

tIDCoRp’s provisioning of valuation reserves on doubtful accounts is pursuant to Bangko Sentral ng pilipinas (BSp) Circular No. 247 dated June 22, 2000 and BSp Circular No. 313 dated December 27, 2001.

provisions for doubtful accounts have been recognized in the books to meet the proposed Capital Adequacy (CA) framework, duly approved by the Bangko Sentral ng pilipinas-Monetary Board (BSp-MB) in CY 2010.

under the new Capital Adequacy Ratio (CAR) framework, tIDCoRp’s CAR was set at 7%, 5% of which should be tier 1 capital by December 31, 2012. During the transition period beginning 2011, its CAR must not be lower than 3% and by January 1, 2012 should be at 5%.

As proposed under the new CAR framework and as required by the Bangko Sentral ng pilipinas (BSp) the balance of the Allowance for Doubtful Accounts of p2.327 billion was already recognized as of December 31, 2010, net of the effect of the write-off of p665.265 million implemented in CY 2009.

j. use of estimates

the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting periods. Significant areas where management’s judgment is applied include asset valuations, depreciation and depletion, contingent liabilities and the provision for probable losses. Actual results may differ from estimates.

3. CasH aNd CasH equiVaLeNTs

this account consists of the following:

2010 2009

Cash on hand 164,764 4,019 Cash in bankLand Bank of the philippines (LBp) 624,142 521,828 Development Bank of the philippines (DBp) 175,408 1,372,417 Foreign Currency 37,245,219 951,778

38,209,533 2,850,042 Special savings depositInvestment in option savings deposit-DBp 481,449,000 3,400,000 Investment in high yield special savings deposit-LBp 15,941,000 33,800,000

497,390,000 37,200,000 535,599,533 40,050,042

Short-term placements are maintained as part of management’s policy to secure the liquidity position of the Agency. this assures that funds are available to meet liquidity requirements.

the short-term placements as at December 31, 2010 have terms ranging from 6 to 25 days and with effective interest rates at 1.20 per cent p.a. to 1.60 per cent p.a.

the increase in the Foreign Currency account was due to the collection of pre-termination fee from an account under the Guarantee program.

the increase in option savings deposit – DBp was due to a pretermination of an account under the Lending program on December 23, 2010. the fund was invested in short-term placements to partially cover immediate liquidity requirements and to reinvest portion of the same in high-yielding securities.

4. FiNaNCiaL iNVesTMeNTs - aVaiLaBLe FOr saLe

this account is composed of the following:

Type 2010 2009treasury bills 76,796,523 -treasury bonds 1,113,086,172 1,137,957,240Retail treasury bond 472,973,631 399,998,739FCD Rop bonds* 34,287,350 -

1,697,143,676 1,537,955,979

* Foreign Currency Denominated / Republic of the philippines

the Corporation’s available for sale (AFS) investments is net of the accumulated unrealized lossofP223,450reflectedinthefairvaluesintheequitysectionofthebalancesheet.


5. LOaNs aNd reCeiVaBLes

5.1 Current


(as restated) 2010 2009

Loans receivable 306,668,965 793,126,880 Interest receivable on investments 21,283,141 20,468,401 Interest receivable on loans 2,780,183 3,703,037 Accounts receivable 636,787 122,558

331,369,076 817,420,876

Loans receivable

this account represents the outstanding balance of loan releases to clients under the Direct Lending and the Wholesale Lending programs.

the decrease in the Loans Receivable account was due to the pre-termination of a Loans Receivable account under the Lending program.

interest receivable on investments

this account represents accrued interest receivable from investments in government-issued debt instruments, government bank products and other investments, broken down as follows:

2010 2009treasury bonds 19,314,441 18,667,187 phil. interest reduction bonds 1,725,571 1,725,571 Special savings deposit 171,646 5,580 Cultural Center of the phil. bonds 70,000 70,000 Foreign Currency Deposit time deposit 1,483 63

21,283,141 20,468,401

interest receivable on loans

this account represents accrued interest receivable from loans receivable with current status as of the balance sheet date. Section 4 of BSp Circular No. 202, series of 1999 provides that no accrual of interest income is allowed if a loan has become non-performing. Interest on non-performing loans shall be taken up as income only when actual collections thereon are received.

accounts receivable

this account represents trade receivables from clients under the different program offerings, namely; guarantee, direct lending and credit insurance programs.

5.2 Non-current


2010 2009Loans receivable - net 135,041,962 169,991,306 Receivables from subrogated claims - net 361,882,886 27,007,634

496,924,848 196,998,940

Loans receivable

this account represents the long-term portion of the outstanding balance of the loans receivable originated by the enterprise under the Direct Lending program.

2010 2009Long-term portion 200,026,969 254,316,760 Allowance for doubtful accounts (64,985,007) (84,325,454)

135,041,962 169,991,306

receivables from subrogated claims

this account represents advances made by tIDCoRp to creditor-banks or assumption of the guaranteed portion of the loan and interest as well as other charges related thereto and the restructured accounts of defaulting clients under the guarantee program. these claim payments cover the period from CYs 1980 to 2010. the guarantee accommodations for these accounts were issued during the period 1979 to 2005.

In CY 2007, the Corporation commenced the implementation of the Board-approved modified-deferred approach of writing off non-performing accounts (NpA) in the books within a period of three (3) years. tIDCoRp booked the write-off of NpAs in the amount of p196.163 million, p197.648 million and p663.613 million in CY 2007, 2008 and 2009, respectively.

2010 2009Receivables from subrogated claims 1,924,297,098 1,246,677,680 Allowance for doubtful accounts (1,562,414,211) (1,219,670,046)

361,882,887 27,007,634

From CY 2008 to 2010, tIDCoRp settled advances on called guarantees for the following accounts:

2008 2009 2010 TotalGeneral Facility Program

a. World Grannary, Inc. (WGI) 709,951,184 454,169,762 438,281,302 1,602,402,248

b. Software Ventures, Inc. (SVI) 26,206,747 41,191,389 240,788,820 308,186,956

736,157,931 495,361,151 679,070,122 1,910,589,204

Small and Medium Enterprises Program

a. Gibon Furniture Center 6,600,984 - - 6,600,984

b. Southwoods Apparel, Inc. 4,785,928 - - 4,785,928

c. Beve Sea enterprises - 1,489,856 - 1,489,856 d. Factory Direct Ventures, Co. Ltd. - 535,884 - 535,884

11,386,912 2,025,740 - 13,412,652 747,544,843 497,386,891 679,070,122 1,924,001,856

As a result of the call on the guarantees issued in favor of the creditor-banks, tIDCoRp settled advances on these default accounts aggregating to p1.924 billion covering principal and interest amortizations due covering the period December 2006 to November 2010 for large and SMe accounts. For SVI, a total of p308.187 million has been paid representing interest of p70.769 million from February 2007 and full settlement of the principal loan of uS$5-million or p237.418 million due last May 2010 with Deutsche Bank. For WGI, a total of p1.602 billion has been paid representing principal and interest amortizations to the Royal Bank of Scotland (formerly ABN-AMRo), united Coconut planters Bank (uCpB) Commercial, uCpB – Savings, uCpB – trust and the philippine Bank of Communications (pBCom) covering the period December 2007 to November 2010 based on the court’s order as embodied in the approval of the Rehabilitation program of WGI issued last June 2008.



6. OTHer asseTs

6.1 Current

this account covers non-trade receivables and other assets as follows:

(as restated)2010 2009

Deferred charges - MCIt 19,417,243 9,987,431 prepaid expenses 4,143,539 1,607,753 Advances to officers and employees 1,236,756 1,306,182 Receivables from BIR 714,873 3,333,369 Accounts receivable - officers and employees 353,798 388,959 petty cash/revolving fund 242,623 179,149

26,108,832 16,802,843

the two per cent Minimum Corporate Income tax (MCIt) for the taxable year 2010 is recorded to an asset account, “Deferred Charges – MCIt” in the amount of p19.058 million. this is credited against the normal income tax due for a period not exceeding three taxable years immediately succeeding the taxable year in which the same has been paid pursuant to the provisions of BIR Revenue Regulation No 9-98 dated August 25, 1998. For CY 2010, the expired portion of deferred charges – MCIt amounts to p2,196,676.

the increase in Deferred Charges was due to estimated Minimum Corporate Income tax due for CY 2010, while the prepaid expenses cover property insurance on foreclosed property and fees to the Bureau of the treasury on the guarantee cover of the National Government on the Corporation’s borrowings.

6.2 Non-current



other non-trade receivables - net 16,920,480 19,200,000Sales contract receivable 5,851,493 6,880,255 Accounts receivable-National Gov’t. - net 3,382,793 3,382,793premium reserve fund 286,499 286,499other investments 64,500 64,500Miscellaneous assets 3,900,105 4,187,073

30,405,870 34,001,120

Non-trade receivables

this account covers the non-trade receivables from the tIDCoRp provident Fund (tpF) representing the seed money allocated and released to institute the Car Funds being administered by the tpF, to cover the Car plan of qualified tIDCoRp officers.

Particulars amountallowance for

doubtful accounts Net amounttIDCoRp provident Fund 16,920,480 - 16,920,480 existing employees 2,025 2,025 -Separated employees 39,247 39,247 -others 5,183,096 5,183,096 -

22,144,848 5,224,368 16,920,480

sales contract receivable

this represents the balance of the selling price of acquired assets under a plan of settlement, whereby the title to said assets is transferred only to the buyer upon full payment of the agreed selling price (BSp Circular No. 380, Series of 2003).

accounts receivable – National Government

this account represents various advances made covering legal fees for the account of the National Government pursuant to Board Resolution No. 1094 dated March 29, 1996, net of required valuation reserves.

Premium reserve fund

this account represents tIDCoRp’s 40 per cent pro rata share in its 20 per cent retention of the gross insurance premiums collected under the Credit Insurance (CI) program, set aside as reserves to cover future claims.

Other investments

this account represents tIDCoRp’s investment in equity securities which are valued at cost. As of the balance sheet date, the Corporation holds a total of 6,450 shares of 10 per cent Cumulative Convertible preferred Stock, p10.00 par value under pLDt’s Subscriber Investment plan.

Miscellaneous assets

this account represents the following assets of the Corporation:


Deposit to various contractors 1,749,733 1,548,843 paintings/other assets 762,963 762,963 prepaid stationery and office supplies 751,409 1,049,718 tower Club Corporate Membership 636,000 636,000 Semi-expendable items - 189,549

3,900,105 4,187,073

7. iNVesTMeNT PrOPerTY

this account represents the cost of the office spaces at the 3rd and 4thfloorsforleaseandacquired assets or Real and other properties Acquired (RopA) which was reclassified from the Building Account and Acquired Assets/RopA Account in compliance with pAS No. 40 as follows:

Building rOPa TotalCostJanuary 1, 2010 44,812,627 - 44,812,627 Reclassification 74,682,987 33,943,097 108,626,084 December 31, 2010 119,495,614 33,943,097 153,438,711 Accumulated depreciationJanuary 1, 2010 15,345,214 25,229 15,370,443 Depreciation 1,444,448 5,312 1,449,760 Adjustment (112,478) - (112,478)Reclassification 27,609,877 - 27,609,877 Accumulated depreciationDecember 31, 2010 44,287,061 30,541 44,317,602Accumulated impairmentJanuary 1, 2010 - 3,851,107 3,851,107Impairment - 9,691,922 9,691,922 Disposal - (1,144,622) (1,144,622)Accumulated impairmentDecember 31, 2010 - 12,398,407 12,398,407

Net book valuedecember 31, 2010 75,208,553 21,514,149 96,722,702

Net book value december 31, 2009 29,467,413 31,331,714 60,799,127

this investment property – Non-current Assets Held for Sale covers the properties acquired by the Corporation through dacion in payment or foreclosure in settlement of loans under the Direct Lending and Guarantee programs.


8. PrOPerTY aNd equiPMeNT


Building Furniture and

equipment TotalCostJanuary 1, 2010 161,668,059 79,203,424 240,871,483 Additions - 8,593,933 8,593,933 Disposals - (5,552,096) (5,552,096)Reclassification (74,697,486) 3,551,817 (71,145,669)December 31, 2010 86,970,573 85,797,078 172,767,651

Accumulated depreciation January 1, 2010 39,026,413 47,519,847 86,546,260

Depreciation 7,655,630 4,729,414 12,385,044 Disposals - (5,240,591) (5,240,591)Adjustment (3,925,913) - (3,925,913)Reclassification (24,223,701) - (24,223,701)Accumulated depreciation December 31, 2010 18,532,429 47,008,670 65,541,099

Accumulated impairmentJanuary 1, 2010 - 1,939,311 1,939,311 Impairment - 878,410 878,410 Disposals - (28,028) (28,028)Adjustment - (51,162) (51,162)Accumulated impairment December 31, 2010 - 2,738,531 2,738,531

Net book value december 31, 2010 68,438,144 36,049,877 104,488,021

Net book value december 31, 2009 (as restated) 122,641,646 29,744,266 152,385,912

9. aCCOuNTs PaYaBLe

this account represents trade payables of the Corporation, broken down as follows:

2010 2009pari-passu payable - banks 39,203,464 293,572,850 CoFACe/CoGeRI 67,206 67,206 Refund of processing fees 14,850 14,850

39,285,520 293,654,906

9.1 Pari-passu payable - banks

this account represents the liability of the Corporation to the participating Financial Institutions (pFI) representing provision for/reversal of contingent liabilities to real obligations for the account of World Grannary, Inc. (WGI) pursuant to pAS 37 as well as the corresponding share of banks in tIDCoRp’s collections/recoveries and proceeds from the sale of acquired assets from default accounts under the Guarantee program.

the decrease in pari-passu payable - Banks represents the regular principal amortizations paid in CY 2010 for the default guaranteed loans of World Grannary Corporation, provided in CY 2009.

9.2 COFaCe

this account represents the share of Compagnie Francaise D’ Assurance pour Le Commerce exterieur (CoFACe) – tIDCoRp’s reinsurer in the Credit Insurance program, in the buyers’ credit limit application fees covering the cost of credit information verification conducted on the foreign buyers of the clients under the Credit Insurance program of the Corporation.

9.3 refund of processing fees

this represents processing fees for refund to prospective clients who have cancelled their application in tIDCoRp’s various program offerings.

10. LOaNs PaYaBLe

this account represents the Short-term Loan Line of p2.200 billion with the LBp in the amount of p1.950 billion and with RCBC in the amount of p250 million, from a level of p1.800 billion as of December 31, 2009. the increase during the year of p400 million represents additional drawdown of p250 million from LBp and p150 million from RCBC.

11. iNTeresT PaYaBLe

this account represents the interest obligation of the Corporation in connection with the Short-term Loan Line with the Land Bank of the philippines (LBp) and Rizal Commercial and Banking Corporation (RCBC).

interest computation Loan amount 2010 2009Land Bank of the philippinesa. three - month pDSt-F plus spread,

subject to monthly repricing 600,000,000 6,093,707 12,186,497 b. three - month pDSt-F plus spread,

subject to monthly repricing with Republic of the philippines (Rop) Guarantee 1,350,000,000 4,387,831 1,100,503

Rizal Commercial and Banking Corporationa. one - month pDSt-F plus spread,

subject to monthly repricing 250,000,000 250,277 151,869 Rop Guarantee fee of 1 percent based on loan amount - 1,385,795 197,260

2,200,000,000 12,117,610 13,636,129

12. aCCrued eXPeNses

this account represents expenditures which were already incurred but has remained unpaid as of balance sheet date. As at December 31, 2010 accrued expenses totaled p9.122 million, of which, p5.823 million was set-up in prior years and p3.299 million was set-up during the current year. the amount of p23.688 million prior year set-up of accrued expenses was reversed in CY 2010. As at December 31, 2009, accrued expenses totaled p8.650 million.

13. iNCOMe TaX PaYaBLe

this account represents the balance of the two per cent Minimum Corporate Income tax for the taxable Year 2010 amounting to p9.071 million less the application of the first to third quarters Income tax Returns amounting to p5.807 million leaving a balance of p3.264 million representing CY 2010 last quarter of corporate income tax liability due and payable on April 15, 2011.

14. uNearNed iNCOMe


Current Non-Current TotalGuarantee/Commitment fees 34,322,562 - 34,322,562 Capitalized interest on restructured receivables - 2,405,967 2,405,967 Deferred interest, penalties and other charges on which acquired assets on default accounts were applied 167,046 3,180,453 3,347,499 Balance december 31, 2010 34,489,608 5,586,420 40,076,028 Balance december 31, 2009 69,651,677 5,308,455 74,960,132

this account represents guarantee fees collected in advance from various accounts under the Guarantee program, capitalized interest on restructured accounts as well the interest, penalties and other charges on which proceeds from the foreclosure/dacion of assets were applied.



15. MisCeLLaNeOus PaYaBLes this account consists of the following:

(as restated) 2010 2009

Client’s deposit 18,574,354 19,557,617 other current liabilities 15,561,316 17,275,783 Miscellaneous deposits 6,455,669 6,240,356 trust liabilities 1,216,946 1,216,946 Reinsurance premium payable 46,360 3,621,935

41,854,645 47,912,637

15.1 Client’s deposit

this account covers excess guarantee fees and advance collection of credit insurance premiums, interest and penalties collected from clients under the various program offerings of the Corporation which shall be applied to future fees due.

15.2 Other current liabilities


2010 2009Withholding tax - employees 6,488,366 5,183,493 Bureau of Internal Revenue 5,007,500 7,464,395 provident fund - contributions & loans payable 2,127,390 2,534,721 Gov’t. Service Insurance System 1,260,011 1,040,978 Accounts payable - trade 363,623 767,597 Accounts payable - Non-trade 146,201 135,118 Home Development Mutual Fund 88,306 72,749 philippine Health Insurance Corp. 76,019 72,832 National Home Mortgage Finance Corp. 3,900 3,900

15,561,316 17,275,783

15.3 Trust Liability

this account represents tIDCoRp and insurer’s 40% share in premium reserve fund based on gross insurance premium set aside to cover future claims.

15.4 Miscellaneous deposit

this account includes bidders’ and performance bonds collected from suppliers and contractors as well as down payment from buyers on the sale of acquired assets.

15.5 reinsurance premium payable

this account represents Compagnie Francaise D’ Assurance pour Le Commerce exterieur’s (CoFACe) share in the gross insurance premium by virtue of the Reinsurance Agreement.

16. equiTY

16.1 Capital stock

on January 11, 1985, presidential Decree No. 1962, further amending Section 7 of presidential Decree No. 550, as amended by presidential Decree No. 1080, was issued increasing the authorized capital stock of the Corporation from p2.000 billion to p10.000 billion which is fully subscribed by the Government of the Republic of the philippines. As at December 31, 2010, the paid-in capital amounts to p4.892 billion.

16.2 deficit

this account represents the accumulated losses from prior years’ operations and the result of the transfer of Non-performing Assets and related liabilities to the National Government pursuant to Administrative order No. 64 dated March 24, 1988 and Deed of transfer dated March 08, 1989.

In consonance with pAS No. 8, Deficit account is restated as follows:

(as restated) 2010 2009deficit at beginning of year 4,251,108,325 4,415,772,088 Adjustments related to transactions prior to CY 2009 - (18,091,652)

4,251,108,325 4,397,680,436 Net income (332,475,478) (146,572,111)deficit at end of year 3,918,632,847 4,251,108,325

16.3 Comprehensive income

a. Fair Value Adjustment – Available For Sale

this account represents the net effect of unrealized gain/loss on available-for-sale (AFS) investment portfolio of the Corporation. Accordingly, the adjusted fair value of the AFS is presented as a separate item under equity.

17. GuaraNTees OuTsTaNdiNG

this is an off-book contingent account representing guarantees outstanding in favor of foreign and/or domestic banks/financial institutions for loans they extended to clients/borrowers. the details of the outstanding guarantees as of year-end are as follows:

2010 2009General Facility 13,952,664,439 13,094,247,356preshipment export Finance Guarantee program 1,125,000 17,325,000postshipment export Risk Guarantee program 1,125,000 17,325,000Wholesale Guarantee program - 54,720,000

13,954,914,439 13,183,617,356

For short-term and wholesale guarantee cover, guarantees are booked upon issuance of the guarantee. While for long-term guarantee cover, the contingent liability booked is equal to the drawdowns/availments from the guarantee facility within the accounting period.

For CY 2010, movement in outstanding Guarantee is as follows:

availments/drawdowns amortization/Cancellation us dollar Peso us dollar Peso

General Facility 3,150,000 11,637,574,989 100,715,232 6,084,207,350preshipment

export FinanceGuarantee

program - 16,200,000postshipment

export RiskGuarantee

program - 16,200,000Wholesale Guarantee program - 54,720,000

3,150,000 11,637,574,989 100,715,232 6,171,327,350

to date, out of the outstanding guarantees of p13.954 billion, p543.660 million represents the default unpaid principal portion for the account of WGI which is still to be amortized on semi-annual basis until December 2014. Additional classified accounts in the portfolio namely Metrostar Ferry, Inc. (MFI), Gurango Software Corp. (GSC) and pacific pearl Airways.com Corp. (ppAC) amounts to p211.054 million. In a letter dated october 5, 2010, the philippine Veterans Bank (pVB), creditor bank of MFI, called on the guarantee of the Corporation covering the default loan of MFI in the amount of p132.188 million plus interest.


18. iTeMs HeLd as COLLaTeraL

this account represents loan and guarantee collateral in the form of land certificates of tiles, chattels, and other securities to ensure repayment by borrowers/clients which were assigned p1.00 per item pursuant to the Financial Reporting package of BSp.

19. reVeNue


2010 2009Guarantee, commitment and processing fees 361,963,134 288,987,202 Interest and penalties 203,964,167 56,479,054 Interest on investments and deposits 110,721,332 124,900,987 Gain on sale of investment 52,062,050 21,984,404 Insurance premium and commission 2,262,364 697,674 Gain on sale of acquired assets 2,012,605 13,312,510 Foreign exchange gains 433,885 20,053,694 Gain on sale of equipment 64,249 75,944 Miscellaneous income 66,057,387 9,481,984 799,541,173 535,973,453

19.1 interest and Penalties

this represents interest and penalty charges earned on current loans receivable, restructured loans, receivables from subrogated claims and other receivables.

19.2 Gain on sale of investment

this account represents the trading gains on the sale of Available-for-Sale (AFS) investment portfolio of the Corporation.

19.3 Foreign exchange Gains (Losses)

this account represents the foreign exchange differential arising from the settlement or translation of foreign-currency denominated items. Foreign exchange gains/losses resulting from translation/revaluation of foreign currency monetary items is determined at each balance sheet date using the philippine Dealing System Weighted Average Rate (pDSWAR) as of last working day of the month/closing date. For CY 2009, the Corporation realized foreign exchange gain of p20.054 million due from the collection of cash collateral from the Bureau of the treasury and the translation of the remaining dollar portfolio. For the period ended December 31, 2010, the closing rate used was p43.885/uS$1, representing the pDSWAR as of last working day of the period.

19.4 Miscellaneous income

this represents processing fees from the direct lending program, pre-termination fees from a guaranteed account, interest and penalty charges earned from restructured loans and other receivables classified as default accounts and lease income from investment property.

20. iNTeresT aNd FiNaNCiaL CHarGes

this pertains to paid and/or accrued interest on loans payable of tIDCoRp to various creditor-banks as well as guarantee fees due to the National Government (NG) relative to NG guarantee on the Corporation’s borrowings.

21. FiNaL TaX

this account represents the final tax on interest income from investments and deposits at the rate of 20 per cent on peso-denominated placements and at 7.50 per cent on foreign currency deposits.

2010 2009Interest on investments and deposits 110,721,332 124,900,987 Final tax (22,141,391) (22,573,966)

88,579,941 102,327,021

22. reCLassiFiCaTiON OF aCCOuNTs

Several accounts in the 2009 financial statements were reclassified to conform with the 2010 presentation.

debit CreditAccounts receivable - current 121,358 -other current assets 1 2,200,597 other assets - 3,497,061 Investment property 107,545 107,545 Furniture and equipment 2,710 764,878 Reinsurance premiums payable - Coface 1,168,011 1,168,011 Accrued expenses 9,320,769 14,670 Client’s deposit 42,700 -other current liabilities 4 -Donated capital 1,543,840 -Retained earnings 7,440,642 11,021,796 personal services 14,670 396,374 Maintenance & other operating expenses 298,950 888,768 Miscellaneous deposit - 1,500

20,061,200 20,061,200

23. eVeNTs aFTer THe BaLaNCe sHeeT daTe

on January 26, 2011, the Board of Directors approved the declaration and distribution of cash dividends to the National Government in the estimated amount of p216 million, p150 million of which was remitted to the Bureau of the treasury on January 28, 2011 and the balance upon issuance of the CY 2010 Annual Audit Report of the Commission on Audit.

24. risk MaNaGeMeNT

Risk is inherent in the Corporation’s activities but it is managed through a process of ongoing identification, measurement and monitoring subject to the risk limits and other controls. this process of risk management is critical to the entity’s continuing profitability and each individual within the Corporation is accountable for the risk exposures relating to his or her responsibilities. the Corporation is exposed to credit risk, liquidity risk and market risk. It is also subject to operating risk.

the Corporation’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on its financial performance.

24.1 risk management structure

a. Board of directors

the Board of Directors is responsible for the overall risk management approach and for approving the risk principles and strategies.

b. risk Oversight Committee (rOC)

b.1 Identify, evaluate exposures, assess the probability of each risk and estimate its possible effect and cost.

b.2 Develop risk management strategies.b.3 Implement the Risk Management plan.b.4 Review and revise the plan as needed.b.5 together with the Audit Committee assess and discuss with other concerned

units any significant risks or exposures, the steps Management has taken to minimize such risks; and the Corporation’s underlying policies with respect to risk assessment and risk management.

b.6 Report regularly to the Board of the overall risk exposures, action taken to reduce risks and recommend further action or plans as necessary.

b.7 oversee the system of limits to discretionary authority that Board delegates to Management, ensures that the system remains effective, that the limits are observed and that immediate corrective actions are taken whenever limits are breached.



c. asset-Liability Committee (aLCO)

c.1 Know the market trends and developments.c.2 Monitor the liquidity needs and funding sources of tIDCoRp.c.3 establish guidelines for the funding mix of tIDCoRp.c.4 establish limits for financial risk-taking and confirmation of lending rates to

existing clients.c.5 Monitor plans and status for capital build-up.c.6 Follow-up developments and cash flows from collection of Past Due

obligations and Asset Disposal program.

d. risk Management Office (rMO)

the role of the RMo is to assist and support management in attaining and maintaining a high quality risk asset process as well as healthy and sound portfolio quality that would result to the attainment of the agency’s objectives as to profitability, service efficiency and product delivery.

e. Credit Committee (CreCom)

e.1 Responsible for the soundness and liquidity of the Agency’s credit portfolio and the duty to effectively manage the accounts they supervise.

e.2 Correlatively, the committee has the responsibility to guide the Account officers in their account management and administration functions and duties; and see to it that tIDCoRp credit standards are met in terms of process and quality.

f. Office of the Chief risk Officer

Responsible to perform the following functions:f.1 Integrate risk management into the business activities of the Corporation;f.2 Coordinate the risk management efforts in relation to the Corporation’s risks;f.3 ensure that the Corporation manages adequately credit, market, liquidity,

legal, operational and other risks; f.4 Advise the Board of Directors in areas of risk exposures and risk management

activities of the Corporation.

g. internal audit

Risk management processes throughout the Corporation are audited by the internal audit office that examines both the adequacy of the procedures and compliance with procedures. Internal Audit discusses the results of the assessments with management and reports its findings and recommendations to the Audit Committee and the Board of Directors.

24.2 risk mitigation

a. Credit risk

Credit risk is the risk that the Corporation will incur a loss because its customers, clients or counterparties fail to discharge their contractual obligations. the Corporation manages and controls credit risk by setting limits on the amount of risk it is willing to accept.

the Corporation credit risk is concentrated on its loans and guarantee portfolios and it has established credit quality review process to provide early identification of possible changes in the creditworthiness of counterparties. Counterparty limits are established by the use of a credit classification system which assigns each counterparty a risk rating. the credit quality review process allows the Corporation to assess the potential loss as a result of the risks to which it is exposed and take corrective actions.

b. Liquidity risk and funding management

Liquidity risk is the risk that the Corporation will be unable to meet its payment obligations when they fall due under normal and stress circumstances. to limit this risk, management has arranged diversified funding sources in addition to its core revenue base, manages assets with liquidity in mind, and monitors future cash flowsandliquidityonadailybasis.Thisincorporatesanassessmentofexpectedcashflowsandtheavailabilityofhighgradecollateralwhichcouldbeusedtosecure additional funding if required.

to address this risk, Management incorporated in its Business plan the Contingency Funding plan (CFp) which was approved by the Board in February 2008, with the following objectives:

• to define the level of crisis that the Board of Directors intends for the company to survive without external assistance and that the same crisis level does not escalate to a point that it can not survive.

• Toarticulateinadvancewhattodo,when,howandbywhomtomanageacrisis or liquidity situation to avert any escalation of the same with the minimum of financial impact.

the concept is to manage a crisis fast enough but to mitigate also the risks of escalation and prevent the exacerbation of the crisis by slow and wrong decision.

the CpF covers the following areas:• Survivable Liquidity Stress Level• Activation and Crisis Management process• Senior Management Crisis Committee• Contingency Funding Strategy• Communications• Management Information System Requirements• other Specific Crisis Management preparation Requirements

As a result of the shift by the Corporation from HtM to AFS, tIDCoRp maintains a portfolio of highly marketable securities that can be easily liquidated in the event ofunforeseeninterruptionofcashflow.Likewise,duetothedynamicnatureoftheunderlying businesses, Fund Management and treasury operations Departments of theCorporationaimtomaintainflexibility in fundingbykeepingcommittedcredit lines available.

c. Market risk

Marketriskistheriskthatthefairvalueorfuturecashflowsoffinancialinstrumentswillfluctuateduetochangesinmarketvariablessuchasinterestrates,foreignexchange and equity prices.

In order to address this, Management, in the weekly meeting of the Asset Liability Committee (ALCo), discusses the behavior of the market in terms of prevailing interest rates and mark-to-market valuation of tIDCoRp’s AFS government securities. In this light, the ALCo establishes guidelines for the investment mix of the Corporation. Likewise, it establishes limits for financial risk-taking and confirmation of lending rates to existing clients. the projected foreign exchange level is also tackled to address risks related to its existing FX assets and liabilities.

d. Operational risk

operational risk is the risk of loss arising from systems failure, human error, fraud or external events. When controls fail to perform, operational risks can cause damage to the reputation, have legal or regulatory implications, or lead to financial loss. tIDCoRp cannot expect to eliminate all operational risks, but through a control framework and monitoring, tIDCoRp is able to manage the risks. Controls include effective segregation of duties, access, authorization and reconciliation procedures, staff education and assessment processes, including the implementation of internal audit.


BOard OF direCTOrs

MarGariTa r. sONGCO Alternate Member, Deputy Director General, National economic Development Authority

PaTerNO H. dizON export Sector Representative

rOBerTO B. TaN Alternate Member, undersecretary, Department of Finance

arMaNdO L. suraTOs Alternate Member, Deputy Governor, Bangko Sentral Ng pilipinas

JOse F. saNTOs private Sector Representative

Cesar V. PurisiMa* Chairman Secretary, Department of Finance

seated:

stand ing, from le f t :

*started July 2010, vice Margarito B. Teves



CrisTiNO L. PaNLiLiO Alternate Member, undersecretary, Department of trade & Industry

CaYeTaNO W. PaderaNGa, Jr. Director General, National economic Development Authority

GreGOrY L. dOMiNGO Secretary, Department of trade & Industry

aMaNdO M. TeTaNGCO, Jr. Governor, Bangko Sentral Ng pilipinas

sONia T. VaLdeaViLLa officer-In-Charge, philippine overseas Construction Board

FraNCisCO s. MaGsaJO, Jr. Vice Chairman

president & Ceo

seated:

stand ing, from le f t :



COrPOraTe OFFiCers

Business development Groups 1 & 2

from left

Celso r. Gutierrez Senior Vice president

Julita Leah M. Garcia Vice president

Florencio P. Gabriel, Jr. executive Vice president

Jane u. Tambanillo executive Vice president

Francisco s. Magsajo, Jr. president & Ceo

rovi M. Peralta Vice president

Ma. Clarissa B. Tuazon Senior Vice president

emmanuel r. Torres Vice president

Operations Group & Finance services sector

from left

Marilou a. Medina Senior Vice president

Gloria O. Lacson CoA Auditor

Boobie angela a. Ocay Vice president


Federico F. remo executive Vice president

arsenio C. de Guzman Vice president


Business development Groups 1 & 2

asset Management sector & risk Management Office

Operations Group & Finance services sector

Office of the President & Office of the Chairman

from left

estrellita N. Tesoro Vice president

isabelo G. Gumaru Senior Vice president

ian a. Briones Vice president

Pamela angeli M. solis Vice president

Jane L. Laragan First Senior Vice president

Lilia G. Baun Vice president


from left


Ma. rosario M. demigillo Senior Vice president

eugenia O. sinnung executive Vice president

eduardo s. angeles Vice president

Teresita C. Cometa Vice president


PrOFessiONaLisM•coming to work on time•competence•observing ethical standards and practices

iNNOVaTiON•adaptability to change; openness to change•creativity in problem-solving•new ideas, new products, new processes •up-to-date with developments/trends TeaMWOrk•harmonious relationships •sharing •good interpersonal skills•cooperation•mutual understanding•dependability

eXCeLLeNCe•competence•exceed targets•service excellence•role modeling•extra mile

iNTeGriTY•honesty in time, resources, money, materials, information, sense of responsibility and accountability•commitment/loyalty GOOd GOVerNaNCe•effective planning and management•clear delineation of responsibilities •observing lines of authority•transparency•model by example

Corporate Values



PhileXiM is a regular member of the the Asean eXIM Banks Forum (AeBF) which was created upon the initiative of the export-Import Bank of India (exim India) in 1996. the objective of this organization is to enhance cooperation and forge stronger links among its member institutions.

In September 2010, the AeBF members signed the Reciprocal Risk participation Agreement aimed at promoting the export of goods and services among AeBF members at the 16th AeBF Annual Meeting in Busan, Korea. on the same occasion, the delegates also signed the AeBF Membership protocol to establish guidelines and procedures on the admission of new members and observers of the AeBF. Highlights of the meeting also included the tour de table of Heads of Delegation of 9 Member Institutions in which each member presented on the topic, “post-Crisis Challenges

of Asian-exim, Banks: Facilitating Sustainable and Balanced Growth.” Likewise, 6 observer institutions presented their respective export credit activities and future plans for the establishment of their own exim Bank.

phileXIM is also a member of the Association of Development Financing Institutions in Asia and the pacific (ADFIAp). It was founded in 1976 and is an association of development banks and other financial institutions engaged in the financing of development in the Asia-pacific region with the mission of advancing sustainable development by strengthening the development finance function and institutions, enhancing capacity of members and advocating development finance innovations. ADFIAp has currently 117 member institutions in 42 countries.

PhilEXiM EVP Jane u. Tambanillo (2nd from right) joins eight other AEBF member countries in the signing of the Reciprocal Risk Participation Agreement and AEBF Membership Protocol

Worldwide alliance / Partnerships


Francisco s. Magsajo, Jr.president & ceo

Board Level Offices

eugenia O. sinnung executive vice president risk management office

atty. Jane L. Laraganfirst senior vice presidentcorporate secretary

Office of the President

atty. isabelo G. Gumarusenior vice president office of the chief legal counsel

ian a. Briones vice president

human resource department

Lilia G. Baun vice president corporate planning &communications office

estrellita N. Tesorovice presidentinformation technology department

Operations Group

Federico F. remoexecutive vice president

arsenio C. de Guzman 1

vice presidenttreasury operations department

asset Management sector

atty. Ma. rosario M. demigillosenior vice president

eduardo s. angelesvice presidentsme department

Teresita C. Cometavice president remedial & asset disposition department

Business development Groups

atty. Florencio P. Gabriel, Jr. executive vice president business development group 1

Celso r. Gutierrezsenior vice presidentbusiness development group 1

Julita Leah M. Garciavice presidentbusiness development group 1

Jane u. Tambanillo executive vice president business development group 2

Ma. Clarissa B. Tuazonsenior vice presidentbusiness development group 2

rovi M. Peralta vice presidentbusiness development group 2

atty. emmanuel r. Torresvice presidentbusiness development group 2

Management directory

Finance services sector

Marilou a. Medinasenior vice president

Boobie angela a. Ocay 2

vice presidentfund management department

Office of the Chairman

atty. Pamela angeli M. solisvice president

Office of the COa auditor

Gloria O. Lacsoncoa auditor

1 Concurrent head of General Services and Loan Documentation Departments

2 Assumed position on September 1, 2010 vice Philip Edward B. Sagun


concePt, design + PhotograPhy by : Xpress Media Philippines, Inc.

PhilEXIM Corporate headquarters17th Floor, Citibank tower, Citibank plazaValero Street, Makati City 1226 philippinestrunkline: (632) 885-4700

Cebu Field officeRm.905, Keppel CenterCebu Business Center, Cebu Citytel.No.: (032) 415-8105telefax No.: (032) 233-0469

davao desk4th Floor, DtI Bldg., cor. MonteverdeSales Streets Davao Citytel. No.: (082) 300-9580Fax No.: (082) 221-4952

PHiLeXiM COrPOraTe HeadquarTers17th Floor, Citibank tower, Citibank plazaValero Street, Makati City 1226 philippinestrunkline: (632) 885-4700

www.philexim.gov.ph

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