Bangkok--7 May--EXIM BANK
EXIM Thailand offers a full array of risk mitigation products to SMEs, ranging from buyer risk assessment, short-term and medium- to long-term export credit insurance, investment insurance to foreign exchange forward contract services, amidst the global economic volatilities and emerging business opportunities in the ASEAN market.
Mr. Kanit Sukonthaman, President of Export-Import Bank of Thailand (EXIM Thailand), said that at present the global economic recovery remained cloudy, with the Eurozone and US having to implement fiscal austerity measures to lower deficit and public debts while Japan is still wrestling with deflation. Thai exporters, particularly SMEs, should therefore, be vigilant and mitigate their international trade risks by relying on EXIM Thailand’s foreign exchange forward contract service. To take advantage of this service, exporters do not need to maintain prior credit lines with EXIM Thailand. Neither is a minimum export limit imposed. Importantly, there is no extra premium to enter into a forward contract with EXIM Thailand. Moreover, export credit insurance facilities are also available to help protect Thai exporters against non-payment risks by overseas buyers caused by commercial or political risks.
According to EXIM Thailand’s President, facing the prevailing economic uncertainties in Thailand’s major export markets, Thai SMEs should seek new or unfamiliar export markets with economic potentials and high purchasing power. With EXIM Thailand’s short-term export credit insurance services, exporters will be protected against non-payment risk by overseas buyers. For Thai entrepreneurs with foreign direct investment capabilities, particularly in the neighboring countries, insurance investment is available to safeguard them from political risks arising from the imposition of laws or any action taken by the host government. Meanwhile, medium- to long-term export credit insurance services are offered to cover the risk of payment default for export of goods or services under credit terms of exceeding 180 days to five years such as the export of capital goods and overseas construction contracts.
“In unfamiliar markets, EXIM Thailand could help facilitate Thai exporters’ market penetration through its Buyer/Bank Risk Assessment Service while also protecting their export businesses from non-payment risk with the Bank’s Export Credit Insurance. These services will help remove their worries about payment default by overseas buyers and allow them to concentrate more on business improvement. Additionally, EXIM Thailand organizes training programs on a monthly basis to furnish exporters with understanding on international trade risks and risk mitigation, as well as buyer and credit term selection,” said Mr. Kanit.