Bangkok--9 Nov--EXIM Thailand
In full response to the Government’s policy, EXIM Thailand speeds up its efforts to ease adversed impact of the strong baht on SME exporters via increasing loans to boost SMEs’ liquidity, especially those in the export sector with high local content.
Mr. Kanit Sukonthaman, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that EXIM Thailand has introduced 5 measures to alleviate SME exporters’ plight caused by the baht volatility. First, Collateralized Forward Contract Service for SMEs with the maximum contract value of 500,000 US dollars or approximately 15 million baht. Special exchange rate applies. Second, Forward Contract with Guarantee Support Service whereby SME exporters could purchase a Forward Contract with added guarantee from Small Business Credit Guarantee Corporation (SBCG). Third, Packing Credit Facility for SMEs offering working capital loans in the amount not exceeding 10% of their aggregate export value of the last 3 months with a special interest rate of the Government Savings Bank’s MLR-1.5% for the first two years of repayment. Fourth, Financing Facility for Liquidity Enhancement providing a medium-term loan which has a maximum repayment period of 5 years and the rate of interest and other conditions similar to those of Packing Credit Facility. The total amount of Packing Credit and Financing Facility for Liquidity Enhancement must not exceed 5 million baht. Fifth, US dollar-denominated Pre-shipment Financing Facilities offering working capital loans in US dollar with the maximum loan amount of 300,000 US dollars and an interest rate of LIBOR plus 3%.
Mr. Kanit said that Forward Contract Service and US dollar or Baht-denominated Pre-shipment Financing Facilities were existing products. However, EXIM Thailand is actively expanding its cooperation with relevant government and private sectors, to gain deeper access to high-potential SME exporters stricken by the strong baht. In particular, the main target comprises export businesses with high local content such as agricultural, agro-industrial, seafood, frozen and processed chicken, industrial crafts and furniture industries. Besides, EXIM Thailand has streamlined its credit approval process whereby a loan amount of less than 10 million baht will be approved within 3 working days after receiving the required documents.
For further information, please contact Public Relations Division, Office of Top Management
Tel. 0 2271 3700, 0 2278 0047, 0 2617 2111 ext. 1140-7