Ar 2010 PDF

Sustaining Stable Growth
to the Next Level

Annual Report 2010
Our Aspiration
Our Commitment
By 2013, we will be a viable government financial

institution, realizing a 15% return on equity.
We are a sovereign guarantor extending credit,

insurance and related services to business entities.
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 are committed to contribute to national

development by
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.
stimulating, increasing and developing the export of

goods and services; and
promoting and facilitating investment in strategic
sectors of the economy.
We are proud to be PhilEXIM.
Sustaining Stable Growth

to the Next Level
Annual Report 2010
The covers composite image of the blue sky juxtaposed with the green foliage
and the rock formation signify stability and infinite possibilities that reinforces
PhilEXIMs 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 governments agenda.
Financial Highlights
Total Revenues
1,000
800
800
600
Total ASSETS
536
447
4,000
3,500
3,000
400
2,500
200
2,000
2,856
2,480
2008
2009
2010
2008
Total Expenses
500
400
300
367
313
2009
2010
Total Liabilities
445
3,000
2,500
2,000
200
1,500
100
1,000
1,994
2,240
2,346
2009
2010
2008
2009
2010
2008
COMPREHENSIVE Income
500
Net Worth
357
400
300
200
3,319
1,500
973
1,200
900
120
114
600
100
486
616
300
2008
2009
2010
2008
2009
2010
Table of Contents
2008 and 2009 figures as restated
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 Auditors 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
Philippine Export-import Credit Agency
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 III
President of the Republic of the Philippines
Sustaining Stable Growth to the Next Level
2010 Annual Report
Message of the
Chairman of the Board
ith the new Administrations assumption into

powers, PhilEXIM continues to play its role
as partner towards achieving the countrys
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 PhilEXIMs Board, the tasks ahead are
welcome challenges, more specifically, in pushing for
the economic agenda of the government. An integral
part of the Aquino Administrations 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 PhilEXIMs
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.
Cesar V. Purisima
Board Chairman, PhilEXIM
Secretary, Department of Finance
Report of the President & CEO
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 agencys outstanding net result,
despite its weak capital position, not only demonstrates the
effectiveness of the agencys 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:
Sustaining revenue generation
Re-aligning and reorganizing personnel
Completing computerization of backroom
Participating in remedial intervention of yellow flag accounts
Spinning-off the SME business development function
Selling of fixed assets and mortgage interests
Implementing the new Capital Adequacy Ratio framework
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 generation
The 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
2010 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--vis its counterpart interestbearing 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 personnel
To attain an organizational makeover and strengthen
the companys 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 redeployed to the revenue-generating departments.
Selling of fixed assets
Operations in two company-owned floors in Citibank
Center were transferred to one floor at the Citibank Tower
to generate liquidity by putting the floors up for sale. The
move will also create an additional investment ceiling and
improve transaction flows. PhilEXIMs warehouse in San
Fernando, 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
accounts
The companys 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-togovernment 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
continuous flow of revenue and curtail loss.
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 PhilEXIM
Because 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 nations 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 Managementthe past three
years of operating success can be replicated. Beyond a
doubt, PhilEXIMs aspiration will sustain stable growth to
the next level.
FRANCISCO S. MAGSAJO, JR.

Board Vice-Chairman
President & CEO
Corporate Objectives and Functions
The Role of PhilEXIM
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;
he 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 countrys official Export-Import Credit
Agency through Executive Order No. 85
dated March 18, 2002.
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.
2010 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
5) Energy
6) Mining
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)

Tourism-Related Projects
Type of Project

Lending program by government financial institutions

(GFIs) designed to give small and medium enterprises
(SMEs) greater access to short- and long-term funds.
Hotel, resort, eco-tourism, retirement havens, medical

tourism, wellness facilities, sports and leisure complex in
priority areas under the Department of Tourisms Tourism
Development Plan
Nature of Requirements
CREDIT INSURANCE
Export Credit Insurance (ECI)

Vertical developments (i.e. buildings & other

recreational structures)
Insurance coverage to exporters against the risk of nonpayment by foreign buyers of export shipments on credit
arising from political or commercial risks.
Horizontal developments (i.e. roads, water

sewerage, electrical system, telecoms infrastructure)
Other support facilities
Domestic Credit Insurance

Insurance coverage on receivables of a multinationals

subsidiary company against non-payment of buyers in
the subsidiarys country.
PROGRAMS FOR PRIORITY SECTORS

OF THE GOVERNMENT
Civil works to include:
Information and Communications Technology (ICT) Projects

Type of Project

Development of:
ICT zones (i.e. cyber park or IT park dedicated to IT
locators)
Consistent with governments 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:
IT-based industries (i.e. software development)

IT-related projects (i.e. call/data centers, backroom
processing operations, data recovery and
operations)
1) Tourism
2) Information and Communications Technology (ICT)
3) Agri-Modernization
4) Infrastructure

Vertical & horizontal developments
2010 Annual Report
Capital Expenditure (e.g. network computer servers

and special equipment)
Other support facilities equipment (electro-mechanical

system and installation, metallurgical equipments,
tolling stock, conveyor 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)
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
conditions as well as better cash flows. In the end, the project
becomes 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.
10
Sustained Revenue Generation
Review of Operations
Fulfillment of a Strategy
PhilEXIMs operations are grounded
on a three-point agenda: capital stability,

competency and franchise strengthening.
One of PhilEXIMs 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.
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 agencys 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 agencys 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
2010 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
PhilEXIMs various credit facilities for both small and
large industries including the priority sectors of the
government have considerably contributed to the nations
development especially in the export industry. For CY
2009-2010, export sales supported by PhilEXIMs
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 Corporations lending and
guarantee programs for SMEs, total loan releases and
guarantee issuances of P170 million was accounted for.
11
12
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 Citibank
Center were relocated to one floor at the Citibank
Tower 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
improve transaction flows. PhilEXIMs warehouse in San
Fernando, Pampanga served as a Business Continuity
and Disaster Recovery Site where archives and backup 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 17th floor of Citibank Tower,
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 companys 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. All operating manuals and flow charts of
every 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 wellexperienced personnel. An incentive scheme to provide
rewards based on merit and contribution to revenue
earning departments as well as support groups was also
implemented.
2010 Annual Report
As part of PhilEXIMs 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 agencys efforts
in revenue production is the strengthening of its risk
management framework. In line with this strategy,
PhilEXIMs 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. PhilEXIMs ISO 9001
QMS Certification Data Sheet that reflected its current
status 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
flow of the credit review process, the Internal Audit Office
(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 administrations
campaign to draw funding from its wholly owned entities
as part of good governance and also to help in easing
the national budget deficit.
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14
Highlights of 2010
1st Quarter
ASEAN Workshop on Sharing of
Best Practices on the Establishment

of SME Financial Facility held in
Brunei Darussalam
9th Philfoodex Exhibit at

Megatrade Hall
Plant visit at Philippine Phosphate

Fertilizer Corporation
Meeting with representatives
of Land Bank of the Philippines

Tacloban Lending Center
3rd Quarter
Briefing of delegates as part of
ADFIAPs 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)
16th Annual Meeting of the Asian

Exim Banks Forum and the 15th
AEBF Workshop held in Busan,
Korea
Operationalization of the Trade
Finance and Loans System (TFLS)automating critical processes in

the loan documentation phase of
account management
2nd Quarter
Site inspection at Carmen Copper
Corporation
Plant visits at Phoenix Petroleum
Phil., Royal Mandaya Hotel and

at Global Green Power PLC
Corporation
3rd COURAGE sponsored
Government Employees Sports

Fests, COURAGE CHAMPIONS,
at the Rizal Memorial Sports
Complex, Manila
In-house Seminar on Mortgage

Trust Indenture
Voters' Education Seminar and
Mock Election preparatory to the

May 2010 Presidential Elections
held at the PhilEXIM Multi Purpose
Hall
13th Training Program of the
Asian Eximbanks Forum entitled

Risk Management - A Practical
Approach", held in KL, Malaysia
14th Asian Eximbanks Forum
Training Program on Environment

Related Operations and Project
Analysis held in Seoul, South
Korea
4th Quarter
Briefing on PhilEXIMs programs
for the Tourism Industry Players
of Bohol Tourist Services MultiPurpose Cooperative for its
Wholesale Lending Program
Site inspections at Alliance Select

Foods International, Inc. and
Marsman Drysdale Agri-business
Holdings. Inc.
Presentation of PhilEXIMs
products to tourist inns in

cooperation with the Tourism
Department of the City
Government of Puerto Princesa
led by Mayor Edward Hagedorn
Signing Agreement with First
Gen Corporation and BDO on

Issuance of Commercial Papers
for Hydropower Project Expansion
Christmas outreach activity at the

Center for Health Improvement
and Life Development (CHILD
Haus)
ADFIAP Developement Bank
Management Program delegates

visit to PhilEXIM
2010 Annual Report
15
16
Corporate Social Responsibility
he 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.
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 PhilEXIMs operations from two
company-owned floors at Citibank Center to one floor
at 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
paper in the production of its Annual Report. All of

these efforts were made to minimize PhilEXIMs 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 years
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 diseasestricken 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.
2010 Annual Report
Board Level Committees 2010
PhilEXIMs 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.
Audit Committee
Chairman
Jose F. Santos
Vice: Augusto B. Santos
Members
Armando L. Suratos
Paterno H. Dizon 2
Margarita R. Songco 3
Jose F. Santos 4
Rodolfo G. Serrano, Jr.
Credit Committee
Chairman
Francisco S. Magsajo, Jr.
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 PhilEXIMs 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
Corporations 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 Corporations
business operations or any other areas that could create
significant risks to the Corporations results of operations,
reputation or capacity to fulfill its mandate.
* Meets monthly.
** Meets every other month.
*** Meets quarterly.
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
Chairman
Paterno H. Dizon
Vice: Rodolfo G. Serrano, Jr.
Members
Roberto B. Tan
Jose F. Santos
Margarita R. Songco
Proceso T. Domingo
Augusto B. Santos
Risk Oversight Committee
Chairman
Margarita R. Songco
Vice: Augusto B. Santos
Members
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
17
18
Statement of Management's
Responsibility for Financial Statements
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
reflect amounts that are based on the best estimates and informed judgment of Management with an appropriate
consideration 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.
ROBERTO B. TAN
Alternate Chairman
Board of Directors
FRANCISCO S. MAGSAJO, JR.

President
& Chief Executive Officer
MARILOU A. MEDINA
Senior Vice President
Finance Services Sector
2010 Annual Report
State Auditor's Report

on the Financial Statements
Republic of the Philippines
Commission on Audit
Commonwealth Avenue, Quezon City
The Board of Directors

Trade 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
at December 31, 2010, and the statement of comprehensive income, statement of changes in equity and statement of cash flows
for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
Management 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.
Auditors Responsibility
Our 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 auditors 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 entitys 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 entitys 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 Opinion
As 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.
Opinion
In 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
performance and its cash flows for the year then ended in accordance with Philippine Financial Reporting Standards.
COMMISSION ON AUDIT
TEODORA M. LACERNA
Supervising Auditor
May 5, 2011
19
20
Balance Sheet
For the Year Ended December 31, 2010

(in Philippine Peso)
as restated
Note
2010
2009
CURRENT ASSETS
Cash and cash equivalents
Financial investments - available for sale
Loans and receivables
Other assets
3
4
5
6
535,599,533
1,697,143,676
331,369,076
26,108,832
2,590,221,117
40,050,042
1,537,955,979
817,420,876
16,802,843
2,412,229,740
NON-CURRENT ASSETS
Loans and receivables, net
Investment property, net
Property and equipment - net
Other assets
5
7
8
6
496,924,848
96,722,702
104,488,021
30,405,871
728,541,442
196,998,940
60,799,127
152,385,912
34,001,120
444,185,099
3,318,762,559
2,856,414,839
ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Loans payable
Interest payable
Accrued expenses
Income tax payable
Unearned income
Miscellaneous payables
9
10
11
12
13
14
15
39,285,520
2,200,000,000
12,117,610
9,121,656
3,263,959
34,489,608
41,854,645
2,340,132,998
293,654,906
1,800,000,000
13,636,129
8,650,452
1,383,094
69,651,677
47,912,637
2,234,888,895
NON-CURRENT LIABILITIES
Unearned Income
14
5,586,420
5,308,455
2,345,719,418
2,240,197,350
973,043,141
616,217,489
3,318,762,559
2,856,414,839
TOTAL LIABILITIES
EQUITY
16
TOTAL EQUITY and LIABILITIES

CONTINGENT LIABILITIES
Guarantees outstanding
17
13,954,914,439
13,183,617,356
CONTINGENT ACCOUNT - OTHERS

Items Held as Collateral
18
337
335
See accompanying Notes to Financial Statements
2010 Annual Report
Statement of Comprehensive Income

as restated
Note
Revenue
Operating income
Guarantee, commitment and processing fees
Interest and penalties
Interest on investments and deposits
Gain on sale of investment
Gain on sale of acquired assets
Insurance premium and commission
Miscellaneous income
Other income
Foreign exchange gains
Gain on sale of equipment
19.1
19
19.2
19.4
19.3
Expenses
Operating expense
Personal services
Provision for doubtful accounts
Licenses and taxes
Depreciation expense
Rent, light and water
Impairment loss
Other services
Audit fees and services
Administration expense
Communication expense
Business development expense
Representation expense
Legal fees and other services
Insurance
Staff training and development
Dues and subscription
Travelling expense
Impairment loss - property & equipment
Discretionary expense
Supplies and materials
Fuel, oil and lubricants
Consultancy expense
Repairs and maintenance
Semi-expendable expense
Advertising and promotions
Miscellaneous expense
Other expense
Interest and financial charges
Net income before final tax
Final tax
Net income
Other comprehensive gain (loss)
Unrealized gains (losses) on available for sale investment
Total comprehensive income for the year
20
21
2010
2009
361,963,134
203,964,167
110,721,332
52,062,050
2,012,605
2,262,364
66,057,387
288,987,202
56,479,054
124,900,987
21,984,404
13,312,510
697,674
9,481,984
433,885
64,249
799,541,173
20,053,694
75,944
535,973,453
122,273,254
90,308,078
31,289,366
12,004,611
11,884,343
9,691,922
7,833,578
2,419,212
2,257,690
2,166,934
1,917,500
1,631,851
1,400,499
1,290,515
1,248,671
984,781
966,120
878,410
856,043
843,908
830,833
664,275
397,201
194,753
12,717
740,589
306,987,654
117,568,253
100,000,000
24,793,834
11,519,200
9,794,184
6,999,681
2,052,991
4,411,255
3,754,533
3,043,134
1,822,167
459,349
1,117,832
671,952
992,743
1,281,025
617,970
740,635
931,230
601,479
2,586,991
215,580
73,438
203,875
296,253,331
137,936,650
444,924,304
354,616,869
22,141,391
332,475,478
70,574,045
366,827,376
169,146,077
22,573,966
146,572,111
24,350,174
(32,942,647)
356,825,652
113,629,464
21
22
Statement of Cash Flows

as restated
2010
2009
CASH FLOWS FROM OPERATING ACTIVITIES

Guarantee, interest and premium receipts
482,203,658
321,938,325
304,988,824
234,980,625
Reinsurance premiums
Cash payments to employees and suppliers
(1,256,043)
(5,141,530)
(118,093,612)
(104,252,157)
(161,224,920)
(1,351,462,225)
444,190
1,188,395
(Increase) decrease in operating assets:

Loan releases and claims payment under the guarantee program
Collection of miscellaneous and other receivables
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)
(171,440,472)
361,689,945
CASH FLOWS FROM INVESTING ACTIVITIES

Net placements/proceeds of matured securities
Sale of property and equipment
1,019,161
439,089
Purchase of property and equipment
(8,654,753)
(16,781,474)
(179,076,064)
345,347,560
871,180,000
700,000,000
Net cash provided by/(used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES
Corporate borrowings
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

Payment of net lending from the National Government
180,733,116
(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
(423,497)
20,053,694
Effect of exchange rate changes on cash on hand and in banks
495,549,491
(10,793,587)
Cash and cash equivalents at beginning of period
Net increase/(decrease) in cash on hand and in banks
40,050,042
50,843,629
CASH AND CASH EQUIVALENTS AT END OF PERIOD
535,599,533
40,050,042
2010 Annual Report
Statement of Changes In Equity

Note
Balance, January 1, 2009
Capital
Stock
16
Deficit
16.2
4,891,899,438
(4,397,680,436)
Decrease in fair value adjustment

146,572,111
4,891,899,438
(4,251,108,325)
Increase in fair value adjustment
(24,573,624)
332,475,478
4,891,899,438
(3,918,632,847)
Total
502,588,025
(32,942,647)
146,572,111
24,350,174
Net income
Balance, December 31, 2010
8,369,023
(32,942,647)
Net income as restated

Balance, December 31, 2009 as restated
Other
Comprehensive
Income (Loss)
16.3
616,217,489
24,350,174
332,475,478
(223,450)
973,043,141
23
24
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.
TIDCORPs corporate objective is to contribute to the countrys 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, TIDCORPs expanded functions are the following:
T o 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;
T o guarantee loans granted by Philippine banking and financial institutions to
qualified exporters, producers of export products, and contractors with approved
service contracts abroad;
T o 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;
T o 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;
T o provide technical assistance in the preparation, financing and execution of
development or expansion of programs, including the formulation of specific project
proposals; and
T o 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 TIDCORPs 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.
2010 Annual Report
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.
PAS 39 Financial Instruments: Recognition and Measurements. Financial assets

and financial liabilities are recognized on the Corporations 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.

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.
2.3 Significant accounting judgments and estimates

In the process of applying the Corporations 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:

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.
a. Impairment losses on loans, advances and contingent liabilities
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.
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 estimation of amount and timing of future cash flows when
determining 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.

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

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.
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 assets carrying amount or recognized as
a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Corporation and the cost of the
item 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
Office equipment, furniture & fixtures
Transportation equipment
Other property, plant & equipment
10-30
5-10
7-10
5
years
years
years
years
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
economic benefits that are associated with the investment property will flow to
the 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:
c ommencement of owner-occupation, for a transfer from investment
property to owner-occupied property;
c ommencement of development with a view to sale, for a transfer from
investment property to inventories;
e
nd of owner-occupation, for a transfer from owner-occupied property to
investment property;
c ommencement of an operating lease to another party, for a transfer from
inventories to investment property;
Depreciation is charged to operations on the month following the date of

purchase.
e
nd of construction or development, for a transfer from property in the
course of construction or development to investment property.
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.
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.
25
26
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.
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.
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 noncurrent assets.
Pursuant to the BSP Circular No. 520 dated March 20, 2006, TIDCORP
adopted the following policies in accounting for ROPA (see Note 2.2):
L and and buildings are accounted for using the cost model under PAS 40
Investment Property;
B
uildings 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
Unrealized gains or losses of AFS shall be included directly in equity and

shown in the statement of changes in equity.
L and, buildings and other non-financial assets shall be subject to the

impairment provisions of PAS 36 Impairment.
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.
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.

d. Impairment of Assets
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.
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
assets carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an assets 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.
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
economic benefits that are associated with the investment property will flow to
the entity and the cost of the investment property can be measured reliably. IP is
held to earn rentals or for capital appreciation or both.
Starting January 01, 2005 TIDCORPs 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 TIDCORPs 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.
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.

e. Foreign Currency-Denominated Monetary Assets

The Corporations 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.
c ommencement of owner-occupation, for a transfer from investment property

to owner-occupied property;
c ommencement of development with a view to sale, for a transfer from
investment property to inventories;
e
nd of owner-occupation, for a transfer from owner-occupied property to
investment property;
c ommencement of an operating lease to another party, for a transfer from
inventories to investment property;
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:
e
nd 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.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 Corporations management
purchased and held indefinitely and will be available to be sold when the
need for liquid funds arises during operating cycle.
O
ther non-financial assets shall be accounted for using the cost model under
PAS 16 Property, Plant and Equipment;
Transfer to, or from, investment property shall be made when, and only when,
there is a change in use, evidenced by:
c.1 Due from banks and loans and receivables
f.1 employers share at 25% of basic salary and;
f.2 employees share at 5% of basic salary
2010 Annual Report
g. Recognition of income
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.

Revenue is recognized when it is probable that the economic benefits will flow to
the Corporation and the revenues can be reliably measured.

g.1 Income from Guarantee Operations
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 managements judgment is applied include asset
valuations, depreciation and depletion, contingent liabilities and the provision
for probable losses. Actual results may differ from estimates.
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 brokers commission are
deducted from gross insurance revenues. TIDCORPs commission income is
immediately recognized and offset against premiums due to the reinsurer.
h. Cash and cash equivalents

Cash and cash equivalents as referred to in the cash flow statement comprises
cash 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
or constructive) as a result of a past event, and it is probable that an outflow of
resources 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.
TIDCORPs 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, TIDCORPs 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%.
j. Use of Estimates
3. CASH AND CASH EQUIVALENTS

This account consists of the following:
2010
Cash on hand
Cash in bank
Land Bank of the Philippines (LBP)
Development Bank of the Philippines (DBP)
Foreign Currency
164,764
4,019
624,142
175,408
37,245,219
38,209,533
521,828
1,372,417
951,778
2,850,042
481,449,000
3,400,000
15,941,000
497,390,000
535,599,533
33,800,000
37,200,000
40,050,042
Special savings deposit

Investment in option savings deposit-DBP
Investment in high yield special savings
deposit-LBP
2009
Short-term placements are maintained as part of managements 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
Treasury bills
Treasury bonds
Retail treasury bond
FCD ROP bonds*
2010
2009
76,796,523
1,113,086,172 1,137,957,240
472,973,631 399,998,739
34,287,350
1,697,143,676 1,537,955,979
* Foreign Currency Denominated / Republic of the Philippines

The Corporations available for sale (AFS) investments is net of the accumulated unrealized
loss of P223,450 reflected in the fair values in the equity section of the balance sheet.
27
28
5. LOANS AND RECEIVABLES

Receivables from subrogated claims
5.1 Current
Loans receivable
Interest receivable on investments
Interest receivable on loans
Accounts receivable
2010
306,668,965
21,283,141
2,780,183
636,787
331,369,076
(As restated)
2009
793,126,880
20,468,401
3,703,037
122,558
817,420,876
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.
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.
Receivables from subrogated claims

Allowance for doubtful accounts
Treasury bonds
Phil. interest reduction bonds
Special savings deposit
Cultural Center of the Phil. bonds
Foreign Currency Deposit time deposit
2010
19,314,441
1,725,571
171,646
70,000
1,483
21,283,141
2009
18,667,187
1,725,571
5,580
70,000
63
20,468,401
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
Loans receivable - net

Receivables from subrogated claims - net
2010
135,041,962
361,882,886
496,924,848
2009
169,991,306
27,007,634
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.
Long-term portion
Allowance for doubtful accounts
2009
2010
Total
a. World Grannary,
Inc. (WGI)
b. Software
Ventures, Inc. (SVI)
709,951,184
454,169,762
438,281,302
1,602,402,248
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
b. Southwoods
Apparel, Inc.
4,785,928
-
6,600,984
4,785,928
1,489,856
1,489,856
d. Factory Direct
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.
2008
General Facility Program
c. Beve Sea Enterprises
Interest receivable on loans
2009
1,246,677,680
(1,219,670,046)
27,007,634
From CY 2008 to 2010, TIDCORP settled advances on called guarantees for the
following accounts:
Interest receivable on investments

This account represents accrued interest receivable from investments in governmentissued debt instruments, government bank products and other investments, broken
down as follows:
2010
1,924,297,098
(1,562,414,211)
361,882,887
2010
200,026,969
(64,985,007)
135,041,962
2009
254,316,760
(84,325,454)
169,991,306
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 courts order as
embodied in the approval of the Rehabilitation Program of WGI issued last June
2008.
2010 Annual Report
6. OTHER ASSETS

Accounts receivable National Government
6.1 Current
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.
This account covers non-trade receivables and other assets as follows:
Deferred charges - MCIT

Prepaid expenses
Advances to officers and employees
Receivables from BIR
Accounts receivable - officers and employees
Petty cash/revolving fund
2010
19,417,243
4,143,539
1,236,756
714,873
353,798
242,623
26,108,832
(As restated)
2009
9,987,431
1,607,753
1,306,182
3,333,369
388,959
179,149
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 Corporations borrowings.

6.2 Non-current
Premium reserve fund

This account represents TIDCORPs 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 TIDCORPs 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 PLDTs
Subscriber Investment Plan.
Miscellaneous assets
This account represents the following assets of the Corporation:
2010
1,749,733
762,963
751,409
636,000
3,900,105
Deposit to various contractors

Paintings/other assets
Prepaid stationery and office supplies
Tower Club Corporate Membership
Semi-expendable items
(As restated)
2009
1,548,843
762,963
1,049,718
636,000
189,549
4,187,073
Other non-trade receivables - net

Sales contract receivable
Accounts receivable-National Govt. - net
Premium reserve fund
Other investments
Miscellaneous assets
2010
16,920,480
5,851,493
3,382,793
286,499
64,500
3,900,105
30,405,870
(As restated)
2009
19,200,000
6,880,255
3,382,793
286,499
64,500
4,187,073
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
TIDCORP Provident Fund
Existing employees
Separated employees
Others
Allowance for
Amount
Doubtful Accounts
16,920,480
2,025
2,025
39,247
39,247
5,183,096
5,183,096
22,144,848
5,224,368
Net Amount
16,920,480
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).
7. INVESTMENT PROPERTY

This account represents the cost of the office spaces at the 3rd and 4th floors for lease and
acquired 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:
Cost
January 1, 2010
Reclassification
December 31, 2010
Accumulated depreciation
January 1, 2010
Depreciation
Adjustment
Reclassification
December 31, 2010
Accumulated impairment
January 1, 2010
Impairment
Disposal
December 31, 2010
Building
ROPA
Total
44,812,627
74,682,987
119,495,614
33,943,097
33,943,097
44,812,627
108,626,084
153,438,711
15,345,214
1,444,448
(112,478)
27,609,877
25,229
5,312
-
15,370,443
1,449,760
(112,478)
27,609,877
44,287,061
30,541
44,317,602
3,851,107
9,691,922
(1,144,622)
3,851,107
9,691,922
(1,144,622)
12,398,407
12,398,407
Net book value

December 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.
29
30
8. PROPERTY AND EQUIPMENT
10. LOANS PAYABLE
Building
Cost
January 1, 2010
Additions
Disposals
Reclassification
December 31, 2010
January 1, 2010
Depreciation
Disposals
Adjustment
Reclassification
December 31, 2010
January 1, 2010
Impairment
Disposals
Adjustment
December 31, 2010
Furniture and
Equipment
161,668,059
(74,697,486)
86,970,573
Total
79,203,424 240,871,483
8,593,933
8,593,933
(5,552,096)
(5,552,096)
3,551,817 (71,145,669)
85,797,078 172,767,651
39,026,413
7,655,630
(3,925,913)
(24,223,701)
47,519,847
4,729,414
(5,240,591)
-
86,546,260
12,385,044
(5,240,591)
(3,925,913)
(24,223,701)
18,532,429
47,008,670
65,541,099
1,939,311
878,410
(28,028)
(51,162)
1,939,311
878,410
(28,028)
(51,162)
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 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
Land Bank of the Philippines
a. Three - month PDST-F plus spread,
subject to monthly repricing
600,000,000
b. Three - month PDST-F plus spread,
subject to monthly repricing with
Republic of the Philippines (ROP)
Guarantee
1,350,000,000
Rizal Commercial and
Banking Corporation
a. One - month PDST-F plus spread,
subject to monthly repricing
250,000,000
ROP Guarantee fee of 1
percent based on loan amount
2,200,000,000
2010
2009
6,093,707 12,186,497
4,387,831
1,100,503
250,277
151,869
1,385,795
12,117,610
197,260
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.
This account represents trade payables of the Corporation, broken down as follows:
Pari-passu payable - banks

COFACE/COGERI
Refund of processing fees
2010
39,203,464
67,206
14,850
39,285,520
2009
293,572,850
67,206
14,850
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 TIDCORPs 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) TIDCORPs 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 TIDCORPs various program offerings.
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
Guarantee/Commitment fees
34,322,562
Capitalized interest on
restructured receivables
Deferred interest, penalties and other
charges on which acquired assets
on default accounts were applied
167,046
Balance December 31, 2010
34,489,608
Balance December 31, 2009
69,651,677
Non-Current
-
Total
34,322,562
2,405,967
2,405,967
3,180,453
5,586,420
5,308,455
3,347,499
40,076,028
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.
2010 Annual Report
15. MISCELLANEOUS PAYABLES

Clients deposit
Other current liabilities
Miscellaneous deposits
Trust liabilities
Reinsurance premium payable
In consonance with PAS No. 8, Deficit account is restated as follows:
2010
18,574,354
15,561,316
6,455,669
1,216,946
46,360
41,854,645
(As restated)
2009
19,557,617
17,275,783
6,240,356
1,216,946
3,621,935
47,912,637
Deficit at beginning of year

Adjustments related to transactions
prior to CY 2009
Net income
Deficit at end of year

15.1 Clients deposit
This account represents the net effect of unrealized gain/loss on available-forsale (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
2010
6,488,366
5,007,500
2,127,390
1,260,011
363,623
146,201
88,306
76,019
3,900
15,561,316
2009
5,183,493
7,464,395
2,534,721
1,040,978
767,597
135,118
72,749
72,832
3,900
17,275,783
15.3 Trust Liability

This account represents TIDCORP and insurers 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.
(18,091,652)
4,397,680,436
(146,572,111)
4,251,108,325
15.2 Other current liabilities
Withholding tax - employees

Bureau of Internal Revenue
Provident fund - contributions & loans payable
Govt. Service Insurance System
Accounts payable - Trade
Accounts payable - Non-Trade
Home Development Mutual Fund
Philippine Health Insurance Corp.
National Home Mortgage Finance Corp.
4,251,108,325
(332,475,478)
3,918,632,847
a. Fair Value Adjustment Available For Sale
(As restated)
2009
4,415,772,088
16.3 Comprehensive Income
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.

2010
4,251,108,325
15.5 Reinsurance premium payable

This account represents Compagnie Francaise D Assurance Pour Le Commerce
Exterieurs (COFACE) share in the gross insurance premium by virtue of the
Reinsurance Agreement.
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:
General Facility
Preshipment Export Finance
Guarantee Program
Postshipment Export Risk
Guarantee Program
Wholesale Guarantee Program
2010
2009
13,952,664,439 13,094,247,356
1,125,000
17,325,000
1,125,000
13,954,914,439
17,325,000
54,720,000
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:
General Facility
Availments/Drawdowns
US Dollar
Peso
3,150,000
Amortization/Cancellation
US Dollar
Peso
11,637,574,989
100,715,232 6,084,207,350
Preshipment
Export Finance
Guarantee
Program
16,200,000
Postshipment
Export Risk
16. EQUITY
Guarantee
Program
16,200,000
Wholesale Guarantee Program
54,720,000
16.1 Capital Stock
3,150,000
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.
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.
31
32
18. ITEMS HELD AS COLLATERAL
22. RECLASSIFICATION OF ACCOUNTS
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.
Several accounts in the 2009 financial statements were reclassified to conform with the
2010 presentation.
Accounts receivable - current

Other current assets
Other assets
Investment property
Furniture and equipment
Reinsurance Premiums Payable - Coface
Accrued expenses
Clients deposit
Other current liabilities
Donated capital
Retained earnings
Personal services
Maintenance & other operating expenses
Miscellaneous deposit
19. REVENUE
Guarantee, commitment and processing fees

Interest and penalties
Gain on sale of investment
Insurance premium and commission
Gain on sale of acquired assets
Foreign exchange gains
Gain on sale of equipment
2010
361,963,134
203,964,167
110,721,332
52,062,050
2,262,364
2,012,605
433,885
64,249
66,057,387
799,541,173
2009
288,987,202
56,479,054
124,900,987
21,984,404
697,674
13,312,510
20,053,694
75,944
9,481,984
535,973,453
19.1 Interest and Penalties
24. RISK MANAGEMENT
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
Risk is inherent in the Corporations 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 entitys 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 Corporations 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

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 Corporations 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.

Final tax
2,200,597
3,497,061
107,545
764,878
1,168,011
14,670
11,021,796
396,374
888,768
1,500
20,061,200
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.
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.
Credit
23. EVENTS AFTER THE BALANCE SHEET DATE
This represents interest and penalty charges earned on current loans receivable,
restructured loans, receivables from subrogated claims and other receivables.

Debit
121,358
1
107,545
2,710
1,168,011
9,320,769
42,700
4
1,543,840
7,440,642
14,670
298,950
20,061,200
2010
110,721,332
(22,141,391)
88,579,941
2009
124,900,987
(22,573,966)
102,327,021
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 Corporations 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.
2010 Annual Report
c. Asset-Liability Committee (ALCO)
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:
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.

T o 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.
To articulate in advance what to do, when, how and by whom to manage a
crisis or liquidity situation to avert any escalation of the same with the minimum
of financial impact.
d. Risk Management Office (RMO)

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 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 agencys objectives as
to profitability, service efficiency and product delivery.

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
e. Credit Committee (CreCom)

e.1 Responsible for the soundness and liquidity of the Agencys 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 Corporations 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.
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
of unforeseen interruption of cash flow. Likewise, due to the dynamic nature of the
underlying businesses, Fund Management and Treasury Operations Departments
of the Corporation aim to maintain flexibility in funding by keeping committed
credit lines available.

Market risk is the risk that the fair value or future cash flows of financial instruments
will fluctuate due to changes in market variables such as interest rates, foreign
exchange and equity prices.
g. Internal Audit
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 TIDCORPs 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.
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.

c. Market Risk
24.2 Risk mitigation

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.

d. Operational Risk
a. Credit risk
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
flows and liquidity on a daily basis. This incorporates an assessment of expected
cash flows and the availability of high grade collateral which could be used to
secure additional funding if required.
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.
33
34
Board of Directors
s e at e d :
Cesar V. Purisima*
Chairman
Secretary, Department of Finance
s ta n d i n g , f r o m l e f t :
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

*started July 2010, vice Margarito B. Teves
2010 Annual Report
s e at e d :

Vice Chairman
President & CEO
s ta n d i n g , f r o m l e f t :
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
35
36
Corporate Officers
Business Development
Groups 1 & 2
from left
Celso R. Gutierrez
Julita Leah M. Garcia
Vice President
Florencio P. Gabriel, Jr.
Executive Vice President
Jane U. Tambanillo
President & CEO
Rovi M. Peralta
Vice President
Ma. Clarissa B. Tuazon
Emmanuel R. Torres
Vice President
Operations Group &

from left
Marilou A. Medina
Gloria O. Lacson
COA Auditor
Boobie Angela A. Ocay
Vice President
President & CEO
Federico F. Remo
Arsenio C. De Guzman
Vice President
2010 Annual Report
Office of the President &

Office of the Chairman
from left
Estrellita N. Tesoro
Vice President
Isabelo G. Gumaru
Ian A. Briones
Vice President
Pamela Angeli M. Solis
Vice President
Jane L. Laragan
First Senior Vice President
Lilia G. Baun
Vice President
President & CEO
Asset Management Sector &

Risk Management Office
from left

President & CEO
Ma. Rosario M. Demigillo
Eugenia O. Sinnung
Eduardo S. Angeles
Vice President
Teresita C. Cometa
Vice President
37
38
Corporate Values
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
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
2010 Annual Report
Worldwide Alliance / Partnerships
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
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.
39
40
Management Directory

president & ceo
Board Level Offices

Eugenia O. Sinnung
Asset Management Sector

Atty. Ma. Rosario M. Demigillo
Marilou A. Medina
senior vice president
Eduardo S. Angeles
Boobie Angela A. Ocay
vice president
sme department
executive vice president

risk management office
Teresita C. Cometa
Atty. Jane L. Laragan
vice president
remedial & asset disposition department
first senior vice president

corporate secretary
vice president
fund management department
Office of the Chairman

Atty. Pamela Angeli M. Solis
vice president
Business Development Groups
Office of the President

Atty. Isabelo G. Gumaru
office of the chief legal counsel
Office of the COA Auditor

business development group 1
Gloria O. Lacson
Celso R. Gutierrez
Ian A. Briones
coa auditor

vice president
human resource department
Julita Leah M. Garcia
Lilia G. Baun
vice president
vice president
corporate planning &
communications office
Jane U. Tambanillo
Estrellita N. Tesoro
vice president
information technology department

Ma. Clarissa B. Tuazon

Operations Group
Rovi M. Peralta
Federico F. Remo
vice president
Arsenio C. De Guzman
Atty. Florencio P. Gabriel, Jr.
vice president
treasury operations DEPARTMENT
Atty. Emmanuel R. Torres
vice president
Concurrent head of General Services and Loan

Documentation Departments
Assumed position on September 1, 2010 vice

Philip Edward B. Sagun
PhilEXIM Corporate Headquarters

17th Floor, Citibank Tower, Citibank Plaza
Valero Street, Makati City 1226 Philippines
Trunkline: (632) 885-4700
Cebu Field Office
Rm.905, Keppel Center
Cebu Business Center, Cebu City
Tel.No.: (032) 415-8105
Telefax No.: (032) 233-0469
Davao Desk
4th Floor, DTI Bldg., cor. Monteverde
Sales Streets Davao City
Tel. No.: (082) 300-9580
Fax No.: (082) 221-4952
concept, design
photography by
: Xpress Media Philippines, Inc.
PhilEXIM Corporate HeadquarterS

17th Floor, Citibank Tower, Citibank Plaza
Valero Street, Makati City 1226 Philippines
Trunkline: (632) 885-4700
www.philexim.gov.ph

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Sustaining Stable Growth

to the Next Level

By 2013, we will be a viable government financial

We are a sovereign guarantor extending credit,

We will be the best in our core competence of issuing

We are committed to contribute to national

We will be a preferred employer, drawing the best

stimulating, increasing and developing the export of

Sustaining Stable Growth

2008 and 2009 figures as restated

19 State Auditors Report on the Financial Statements

Philippine Export-import Credit Agency

Message of His Excellency

Benigno S. Aquino III

President of the Republic of the Philippines

Sustaining Stable Growth to the Next Level

2010 Annual Report

ith the new Administrations assumption into

Philippine Export-import Credit Agency

Report of the President & CEO

ear 2010 established a historic high performance

The company was able to achieve its own liquidity

2010 Annual Report

budgeted in ongoing conservative efforts to strengthen the

Moreover, a framework for risk management was

FRANCISCO S. MAGSAJO, JR.

Philippine Export-import Credit Agency

Corporate Objectives and Functions

The Role of PhilEXIM

1. To promote and facilitate the entry of foreign loans into

he Philippine Export-Import Credit

Sustaining Stable Growth to the Next Level

4. To meet requests from domestic entities, enterprises,

2010 Annual Report

Programs for Small, Medium and Large Exports

Short-term loans of up to P20 million to direct and

Medium to Long-Term Direct Lending Program for

Medium and long term loans of up to P50 million

Philippine Export-import Credit Agency

Wholesale Direct Lending Program for SMEs

Wholesale Lending Program provides short-term working

SME Unified Lending Opportunities for National

Lending program by government financial institutions

Hotel, resort, eco-tourism, retirement havens, medical

Export Credit Insurance (ECI)

Vertical developments (i.e. buildings & other

Horizontal developments (i.e. roads, water

Domestic Credit Insurance

Insurance coverage on receivables of a multinationals

PROGRAMS FOR PRIORITY SECTORS

Civil works to include:

Information and Communications Technology (ICT) Projects

Consistent with governments existing priorities, PhilEXIM

IT-based industries (i.e. software development)

2) Information and Communications Technology (ICT)

Sustaining Stable Growth to the Next Level

Civil works to include:

2010 Annual Report

Capital Expenditure (e.g. network computer servers

Other support facilities equipment (electro-mechanical

Acquisition of software packages

Civil works to include:

stimulating, increasing and developing the export of

19 State Auditors Report on the Financial Statements

1. To promote and facilitate the entry of foreign loans into

4. To meet requests from domestic entities, enterprises,

9th Philfoodex Exhibit at

Plant visit at Philippine Phosphate

Meeting with representatives

16th Annual Meeting of the Asian

Operationalization of the Trade

Plant visits at Phoenix Petroleum

3rd COURAGE sponsored

In-house Seminar on Mortgage

Voters' Education Seminar and

13th Training Program of the

14th Asian Eximbanks Forum

Site inspections at Alliance Select

Signing Agreement with First

Christmas outreach activity at the

ADFIAP Developement Bank