Bangkok--5 Feb--EXIM Thailand
Mr. Kanit Sukonthaman, President of Export-Import Bank of Thailand (EXIM Thailand), announced EXIM Thailand’s operating results for 2013 at EXIM Thailand’s Head Office on February 5, 2014. In 2013, the Bank registered a net profit of 1,303 million baht, an 18 percent growth over the net profit of 1,100 million baht in 2012. At end-2013, the Bank’s total credit outstanding reached 67,527 million baht, rising from 66,676 million baht at 2012 year-end as a result of an increase in new loan disbursement by 17,174 million baht during the year 2013 while loan repayment totaled 16,670 million baht. At the end of December 2013, NPLs ratio stood at 4.36% totaling 2,942 million baht. Provisions for bad debts accounted for 4,757 million baht representing a provision for doubtful accounts to NPLs ratio of 162%, up from 146% at 2012 year-end.
The Bank’s key mandate in 2013 lies in the promotion of SME businesses. In pursuing such policy, throughout 2013, EXIM Thailand enhanced its collaboration with relevant public and private agencies, especially Ministry of Finance, Ministry of Commerce, Ministry of Industry and various business associations. As a result, 263 new SME exporters were added to the Bank’s growing SME customer base, which constituted 80% of its loan customer portfolio. SME loan approval reached 48,412 million baht, with total SME business turnover of 74,676 million baht while SME loan outstanding at 2013 year-end amounted to 19,111 million baht.
On maritime business promotion, merchant marine loan outstanding in 2013 accounted for 9,043 million baht, increasing by 29% from 6,998 million baht in 2012. New loan approval for merchant marine facilities grew by 3,093 million baht, comprising 15 Thai-flagged carriers. A total number of 46 vessels currently under EXIM Thailand’s financing represented 10 percent of the Thai national fleet composed of 480 vessels of over 1,000 deadweight tonnage (DWT).
In support of Thai investments overseas, particularly, in the AEC and CLMV markets, EXIM Thailand approved a total of 34,845 million baht in international project finance. Out of this amount, 22,612 million baht or 65% was earmarked for Thai investment projects in the CLMV. Further, EXIM Thailand provided risk mitigation facilities worth 10,110 million baht to facilitate continuous expansion of Thai businesses in the CLMV.
As for export credit insurance provision, another major role of EXIM Thailand, the year 2013 saw a decline in EXIM Thailand’s total export credit insurance turnover to 129,402 million baht from 135,073 million baht in 2012. Such reduction was attributed to Thailand’s decreasing agricultural exports as well as clients’ refusal to renew their insurance policies due to eroding export sales, following world trade slowdown and greater concern for rising operating costs. This holds true particularly for SME clients which constituted 75 percent of EXIM Thailand’s total insurance customer base. For SME clients, export value under insurance accounted for 14,768 million baht, or a mere 11 percent of the Bank’s overall insurance value.
For 2014, EXIM Thailand will continue to focus on financial support for SMEs, promotion of trade and investment in AEC, in particular, the CLMV as well as increased collaboration with relevant public and private sectors. Export credit insurance facilities with post-shipment coverage for both commercial and political risks of up to 180 days will be expanded to include medium- to long-term insurance which offers protection for non-payment of goods and services, both pre- and post-shipment spanning a period of up to five years. Investment insurance will also be available to cover political risks incurred to Thai investments abroad as a result of foreign government’s actions with a coverage period from project commencement to completion of not exceeding 15 years.
In conclusion, Mr. Kanit said that EXIM Thailand’s emphasis on sharpening the competitive edge of Thai exporters and investors will continue well into 2014 amid a more positive export outlook following economic recovery in the G3 (US, Japan and EU) propelled by stimulus measures implemented earlier, coupled with a low base effect of last year’s export. The Bank’s aim is for Thai enterprises to take advantage of its full range of liquidity enhancement and risk mitigation facilities which include foreign exchange forward contracts, export credit and investment insurance services.