Bangkok--15 Dec--EXIM
EXIM Thailand introduces “Investment Insurance” service to help accelerate the expansion of Thai investment bases overseas by offering insurance coverage up to 90% of actual losses arising from political disturbance and imposition of state policy in a host country that adversely affects Thai investments.
Export-Import Bank of Thailand (EXIM Thailand) officially launched its “Investment Insurance” facility during the Lunch Talk titled “Overseas Political Risks and Thai Investment Opportunities” at Four Seasons Hotel, Bangkok on December 14, 2006. The occasion was presided over by Dr. Narongchai Akrasanee, Chairman of the EXIM Thailand’s Board of Executive Directors, who also conducted the session with Mr. Jean-Pierre Verbiest, Country Director, Thailand Resident Mission, Asian Development Bank (ADB). Their talk featured preventive measures against sovereign risks amidst current political uncertainties abroad and the ongoing partnership between EXIM Thailand and ADB to support offshore Thai investment expansion.
According to Dr. Apichai Boontherawara, EXIM Thailand President, currently a larger number of Thai business operators have the potential and readiness to expand their investment overseas and take advantage of the favorable investment factors such as better access to raw materials, labor and tax benefits for export to major export markets including the European Union and United States. Nevertheless, they still lack confidence in venturing abroad due to prevailing political uncertainties in host countries. Consequently, EXIM Thailand initiated the “Investment Insurance” facility to provide them with protection against political risk of losses arising from imposition of policy, laws, regulations or any action taken by host government that can jeopardize investment projects engaged by Thai investors.
EXIM Thailand’s investment insurance policy covers up to 90% of actual losses caused by currency inconvertibility, transfer restriction or exchange blockage; expropriation, breach of contract by host government; or war and civil disturbance in host country. The coverage extends from 3-15 years. Two types of policy consist of equity insurance covering losses on assets, profits or other monetary benefits derived from the insured investment; and loan insurance covering the original principal and interest amount according to the repayment schedule under a loan agreement.
About Export-Import Bank of Thailand
Export-Import Bank of Thailand (EXIM Thailand) is a state-owned specialized financial institution under the Ministry of Finance’s supervision. Established under the Export-Import Bank of Thailand Act B.E. 2536 (1993), which was amended in 1999 to expand its role in supporting investments, EXIM Thailand was mandated to provide financial services for the promotion and facilitation of Thailand’s exports, imports and investments for national development. The Bank’s objectives are to strengthen the competitive edge of Thai exporters and investors abroad as well as promoting business activities that contribute to the earning or saving of foreign exchange.
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