Bangkok--2 Oct--EXIM BANK
EXIM Thailand introduces "EXIM Instant Credit" as a pre- and post-shipment revolving fund at a low interest rate of 3.5% p.a. and requiring only a personal guarantee, quick approval is made within seven business days in a credit line of up to 500,000 baht. The new facility is aimed to help boost SME exporters' liquidity and Thai export expansion in quarter 4/2016.
Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), said quarter 4 of each year is normally a period when Thai exporters receive large orders of consumption goods and gift products during the festive season from year-end through the beginning of the following year. EXIM Thailand has thus developed a product called EXIM Instant Credit to serve Thai exporters' additional working capital requirements before and after their shipments. EXIM Instant Credit is an up to 6-month revolving facility rendered together with export bill discount service, available at a low interest rate of 3.5% p.a. and secured with only a personal guarantee. Quick approval is offered within seven business days for a credit line of up to 500,000 baht per exporter. It is expected to enable SMEs to start up or expand their export business to a greater extent.
EXIM Thailand's President further said that the new export credit facility would respond to the government policy of supporting the currently more than two million SMEs who represent the majority of Thai entrepreneurs, and around 24,000 or 10% of whom have export potentials. Despite the improving prospects of Thai exports, Thai exporters are still exposed to risks from both internal and external business environments, e.g. liquidity shortage, inadequate access to financial sources, foreign exchange fluctuations, faltering commodity prices, and so on. In view of this, EXIM Thailand has established a policy to develop facilities with more relaxed conditions to enable SME exporters to access funding sources and expand their business.
"As SME exporters play a vital role in enhancing Thai export growth, EXIM Thailand has developed credit facilities in parallel with risk management tools for international trade with focus on providing easy and speedy access to such facilities. EXIM Instant Credit has accordingly been launched to inject liquidity to the system and drive Thai export growth in the last quarter of this year," added Mr. Pisit.