Bangkok--31 Jan--EXIM BANK
EXIM Thailand has introduced an Investment and Production Efficiency Enhancement Credit Scheme with offering of a special interest rate of 2% per annum in the first 2 years, maximum 7-year tenor, and credit line of up to 100 million baht per entrepreneur. It aims to encourage entrepreneurs in all industrial sectors to purchase and improve their machinery and equipment or factories in order to uplift production efficiency and add value to Thai export goods for greater competitive edge in the new global trade.
Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that amid the successive strengthening of Thai baht, i.e. approximately by 7% in 2019, Thai export value grew in an average of only 1.8% per year over the last 5 years, compared to the robust growth in the foregoing years. Coupled with the slowing trend of Thai economy, the government has established a policy to upgrade Thai entrepreneurs' competitiveness in the global market. EXIM Thailand has thus collaborated with the Fiscal Policy Office, Ministry of finance, in rolling out "Investment and Production Efficiency Enhancement Credit Scheme" to urge Thai entrepreneurs to leverage on the stronger baht by modifying their machinery and equipment and improving the efficiency of their production processes with the import of machinery and equipment at lower costs and development of products for higher value added and greater competitive advantage to cope with the global trade today. This will respond to the government policy of industrial development toward Industry 4.0 under the 20-year National Strategic Plan.
Under the Investment and Production Efficiency Enhancement Credit Scheme, EXIM Thailand will render a long-term credit facility to entrepreneurs in any industrial sectors, with a credit line of up to 100 million baht per entrepreneur, special interest rate of 2.00% per annum in the first 2 years, prime rate -2.00% in the 3rd-5th years and prime rate in the 6th-7th years (prime rate as at January 31, 2020 is 6.00%), and a maximum tenor of 7 years including a grace period of 1 year. The credit facility can be secured by a letter of guarantee from Thai Credit Guarantee Corporation (TCG) together with a personal guarantee. Free! TCG guarantee fee for 4 years and front-end fee, in conjunction with granting of a forward contract worth onefold of credit line. Service is available from today until December 31, 2020. Credit approval is targeted at 5,000 million baht. Approximately 22,000 million baht is expected to be injected into the economic system.
"EXIM Thailand is fully ready to work alongside both the public and private sectors to drive Thailand's continued economic growth under the rapidly changing circumstances at present. Even amid the stronger baht environment, Thai entrepreneurs can close foreign exchange risk positions by using EXIM Thailand's financial facilities. They should also take this opportunity to import new and modern machinery and technology to improve their production efficiency in order to add value to Thai goods for higher competitiveness in respect of both quality and innovation in all markets around the world," added Mr. Pisit.