Bangkok--14 Feb--Export-Import Bank of Thailand
EXIM Thailand expands the reach of its export credit insurance products to better serve Thai exporters in both existing and new markets. SMEs, in particular, will enjoy discounted premium rate, fast approval process and no claim bonus. A buyer/bank risk assessment service is also available to facilitate payment terms decision and enhance Thai exporters’ confidence amidst export opportunities arising in 2013.
Mr. Kanit Sukonthaman, President of Export-Import Bank of Thailand (EXIM Thailand), said that EXIM Thailand provides export credit insurance services tailored to meet the needs of every type of export business, particularly SMEs with annual export values not exceeding 200 million baht. The specially-designed product for SME exporters called “EXIM4SMEs” offers lower premium rate, fast approval process and no claim bonus with an aim to support business start-up or expansion. The service protects SME exporters against non-payment risks while enabling them to offer more competitive payment terms to their overseas buyers. Besides, the insurance policy can be used as collateral for loan. The insurance facility covers commercial risks incurred from buyer’s bankruptcy, buyer’s refusal to pay or take delivery of goods sold as well as political risks derived from restriction or prohibition of hard currency remittance, new regulation prohibiting importation, occurrence of war, revolution or riot that obstructs payment. The rate of indemnity is up to 90% of the loss realized.
According to EXIM Thailand’s President, Thailand’s economy is anticipated to expand further in 2013, due to rising domestic demand resulting from an increase in both public and private investments and a rebound in the manufacturing and export sectors following the massive floods in Thailand and economic woes in the US and Europe. Thai export growth is likely to be driven by the global economic recovery and upcoming establishment of ASEAN Economic Community (AEC) in 2015. In light of the current baht appreciation, exporters can mitigate further exchange risk by using foreign exchange forward contract service. In managing international trade risks, Thai exporters are faced with various options including penetrating promising new markets or engaging in the full range of export credit insurance services beginning with buyer/bank risk assessment. Such facilities will enable exporters, particularly SMEs with low risk tolerance, to expand their business with more confidence and taking full advantage of export opportunities emerging in 2013.