Bangkok--23 Aug--EXIM BANK
EXIM Thailand has introduced new credit facilities, i.e. "EXIM for M Credit" as a pre- and post-shipment revolving facility with a maximum credit line of 50 million baht per customer and "EXIM Nego for M Credit" as a post-shipment revolving facility with a maximum credit line of 10 million baht, in conjunction with a foreign exchange (FX) forward contract facility of up to 3 times the credit facility. This aims to increase Thailand's export growth to meet the country's export target, create new job opportunities, and boost medium-scale exporters' potential to grow and become larger exporters.
Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), has revealed that SMEs are an essential growth engine of Thailand's economy, as well as the Thai export sector. However, the number of medium-scale exporters (M group), in particular, is still small, compared with that of developed countries, i.e. lower than 1% of the total number of Thai entrepreneurs nationwide. Of these entrepreneurs, around 28,000 are exporters, of whom 10% are medium-scale. These "M group" entrepreneurs contribute significantly to the country's economy, generating 12.5% of total GDP (1.79 trillion baht), 7.4% of total job opportunities (1.09 million jobs), and 9.4% of total export value (710 billion baht).
Besides financial facilities for small exporters (S group), EXIM Thailand has developed new credit facilities to fulfill the needs of medium-scale exporters with sales turnover of 50-500 million baht. The facilities comprise financing for export-import business expansion, manufacturing process upgrading and international trade risk hedging tools. They are 1. EXIM for M Credit, which offers a pre- and post-shipment revolving credit line up to 50 million baht per exporter with a minimum interest rate of prime rate -2.00% p.a. (equal to 4.25% p.a.) for the first year, prime rate -1.50% p.a. (equal to 4.75% p.a.) for the second year, and a standard interest rate applicable by the Bank from the third year onward; together with an FX forward contract facility of up to 3 times the credit facility amount; secured by collateral of at least 35% coverage of loan amount plus a personal guarantee; 2. EXIM Nego for M Credit, which is a post-shipment revolving facility aimed to enhance financial liquidity of medium-scale exporters in an amount of up to 10 million baht per exporter at a minimum interest rate of prime rate -2.00% p.a. (equal to 4.25% p.a.) for the first year, prime rate -1.50% p.a. (equal to 4.75% p.a.) for the second year, and at a standard interest rate applicable by the Bank from the third year onward; together with an FX forward contract facility of up to 3 times the credit facility amount; and secured by a letter of guarantee from TCG plus a personal guarantee, or collateral coverage of at least 30% of loan amount plus a personal guarantee. Entrepreneurs may apply for the above credit facilities from today until the end of July 2019. Total credit approval is targeted at 3 billion baht.
"EXIM Thailand is committed to supporting a robust growth of entrepreneurs of all scales from start-up exporters so that they can add value to their products and services and achieve a frog-leap growth through innovations, small-scale entrepreneurs to raise their potential to grow sustainably, medium-scale entrepreneurs to be firmly positioned for further business expansion to large-scale entrepreneurs so that they are fully equipped as one of the successful players in the international trade and investment arena amid the considerable challenges and opportunities in business world of the new era," added Mr. Pisit.
For further information, please contact Corporate Communication Division, Secretary and Corporate Communication Department
Tel. 0 2271 3700, 0 2278 0047, 0 2617 2111 ext. 1141, 1144