Bangkok--15 May--EXIM BANK
Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), recently announced the Bank's operating results of the first three months in 2017 that EXIM Thailand posted a net profit of 362 million baht. As of the end of March 2017, the Bank recorded outstanding loans of 80,891 million baht, rising by 7,288 million baht from the correspondent period of 2016, with new loan drawdown of 4,695 million baht during the year and partial repayment of existing loans. This contributed to a business turnover of 36,440 million baht, of which 24,087 million baht was that for SMEs. Outstanding SME loans amounted to 35,475 million baht, surging 5,221 million baht or 17.26% from the correspondent period of last year. This was attributable to EXIM Thailand's strategic plan to promote SMEs competitiveness in international trade and investment.
EXIM Thailand's non-performing loan ratio (NPLs Ratio) as of the end of March 2017 stood at 3.74% or 3,022 million baht, declining 1,106 million baht from the correspondent period of last year. The Bank's allowance for doubtful accounts was 6,465 million baht, of which 2,778 million baht was minimum provisioning requirement by the Bank of Thailand, representing a ratio of loan loss provision against the requirement of 253.20%, hence enabling the Bank to maintain a strong financial status.
In addition, EXIM Thailand has leveraged on its unique strength as an export credit insurance agency to boost Thai exporters' competitive advantage by enabling them to offer attractive payment terms and expand markets with confidence and without concerns about foreign buyers' non-payment. The Bank business turnover under export credit insurance and investment insurance accounted for 12,949 million baht, of which 2,991 million baht came from SME business or 23.10% of the overall insured amount. Insurance outstanding totaled 19,649 million baht at the end of March 2017.
Meanwhile, EXIM Thailand aims to support Thai entrepreneurs' trade and investment expansion to emerging markets known as CLMV (Cambodia, Lao PDR, Myanmar and Vietnam). At present, the Bank has approved a total accumulated amount of 56,064 million baht in international trade and investment loans, with outstanding loans accounting for 35,742 million baht as the end of March 2017. EXIM Thailand has a plan to open representative offices in CLMV with one scheduled to open in Myanmar in June 2017.
"EXIM Thailand is ready to fulfil the government policy of assisting Thai entrepreneurs involved in international trade and investment at home and abroad, particularly start-up SME exporters and those with small capital base. The Bank is prepared to help them manage risks associated with international business, be it foreign exchange risk or buyer/buyer country risk" added Mr. Pisit.