Bangkok--27 Apr--EXIM Thailand
EXIM Thailand encouraged Thai exporters to obtain export credit insurance to protect their business against non-payment risk following an increase in overseas payment default and insurance claim in the first quarter of 2015, particularly, relating to luxury products.
Mr. Suthanai Prasertsan, Acting President of Export-Import Bank of Thailand (EXIM Thailand), said that with regard to international trade risks in 2015, exporters must keep an eye on past dues and non-payment by overseas buyers, as world economic uncertainties persist. Although insolvencies are expected to decline this year, delayed payments are likely to increase in Asia, North America and Europe.
EXIM Thailand’s Acting President revealed that in the first quarter of 2015, the number of EXIM Thailand’s Export Credit Insurance clients facing delayed payments doubled, compared with the same period last year. A total of nine insured clients submitted documents for claim payment in the total amount of 13.93 million baht. Out of such total, seven cases totaling 10.12 million baht derived from buyers’ bankruptcy while the other two, worth 3.81 million baht, from overseas non-payment. Jewelry and accessories constituted the largest portion of such claim, followed by fresh and canned vegetable and fruit.
According to Mr. Suthanai, EXIM Thailand is ready to provide export credit insurance facilities to furnish Thai exporters with insurance coverage against non-payment risk by overseas buyers caused by commercial or political reasons, including buyer bankruptcy, payment default, refusal to take delivery of goods, remittance of hard currency restricted or prohibited by authorities, new regulations prohibiting importation, occurrence of war, riot, revolution or coup d’etat that obstructs payment. Besides, with export credit insurance, Thai exporters can offer more favorable and competitive credit terms to their foreign buyers with confidence to receive payment. A broad range of export credit insurance facilities are provided to Thai exporters, including EXIM4SMEs featuring more flexible conditions for SMEs and SMEs Export Delight which offers a credit line up to six-fold the collateral value.
“Currently, business opportunities emerge in many markets across the world. However, with opportunities come uncertainties that cause Thai exporters to face more risks of non-payment. Thus, it is advisable that their every shipment be covered with export credit insurance, leaving non-payment risk with the Bank. Accordingly, exporters can devote their time and resources on product development to meet market requirements and, eventually, expand their businesses with more confidence in both existing and new markets with appetite for Thai goods,” said Mr. Suthanai.