Bangkok--16 Jan--EXIM BANK
EXIM Thailand has introduced "EXIM Smart Msurance," a new model of export credit insurance facility, to boost export of medium-sized exporters with potential for market distribution or export in a larger volume to existing or new buyers without concerns about buyers' non-payment. The facility is offered at a special rate of premium in conjunction with insurance premium return in case of no claims made, as well as Free! assessment of the first 5 buyers and 50% discount on buyer assessment fee throughout 2020.
Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that, in 2020, global trade and economy would continue to be volatile and worsened by international political conflicts. Thai exporters have to adjust their business operations to stay competitive and distribute their markets to new frontiers or regions to reduce business associated risks. EXIM Thailand has thus launched a new model of export credit insurance facility, i.e. EXIM Smart Msurance, as a risk hedging facility for medium-sized enterprises with export value of 200-500 million baht per year against non-payment of foreign buyers as a result of such commercial risks as buyer bankruptcy, or refusal to make payment or to accept goods delivered, and such political risks as regulatory controls on outward money transfer, ban on imports of goods, or revocation of permits for buyers to import goods, as well as wars, riots or revolution. The facility is offered at a special premium rate starting from only 0.23% of the insured amount per year. It is expected to bring about accumulated business volume of export credit insurance of more than 6,000 million baht per year.
EXIM Smart Msurance covers international trade risks under D/P, D/A and O/A up to 120 days in more than 138 countries around the world. Maximum coverage is 90% of loss value. In case of no claims made, no-claim bonus will be provided up to 10% of total premium amount. Special Offer! 50% discount on buyer assessment fee throughout 2020, so for each buyer, only 1,000 baht is payable, and for exporters who apply for the facility and obtain insurance policy approval by June 30, 2020 receive free of charge of buyer assessment of the first five buyers.
"EXIM Thailand has a diverse range of financial facilities to respond to demand of international business operators of all sizes, from entrepreneurs ready for export start-up and not yet having collateral security to medium and large enterprises. Therefore, to drive Thai export growth, especially amid the current global economic uncertainties, high competition in international trade and buyers' market environment, EXIM Thailand has developed the export credit insurance facility as a tool to better support Thai entrepreneurs with competitive potential and with confidence in offering relaxed terms of payment or making high-value business deals, and without concerns about payment defaults. This should be conducive to the increase in local labor recruitment and development of industrial sectors, and help drive Thai economic growth stably and sustainably," added Mr. Pisit.