Bangkok--14 May--EXIM Thailand
EXIM Thailand helps Thai exporters expand international trade confidently by collaborating with government agencies, private entities, state-owned banks and commercial banks to provide exporters with an easy access to EXIM Thailand’s export credit insurance service as well as credit support from their main banks. EXIM Thailand posted a net profit of 75 million baht in the first quarter of 2009.
Dr. Apichai Boontherawara, President of Export-Import Bank of Thailand (EXIM Thailand), recently announced operating results of the 2009 first quarter. During the first quarter, EXIM Thailand approved new loans and guarantees in the total amount of 5,434 million baht to Thai exporters and investors. As of the end of March 2009, the total loan outstanding amounted to 48,028 million baht while export credit insurance outstanding was worth 12,539 million baht. On February 17, 2009, EXIM Thailand officially opened the first branch of Thai EXIM International Company Limited in Moscow, Russia, to facilitate Thai-Russian trade transactions and enhance Thai exporters’ confidence in initiating or expanding business in a new market destination.
In 2009, the Ministry of Finance granted EXIM Thailand an additional capital of 5,000 million baht to boost its Export Credit Insurance service (EXIMSurance) with a view to protect Thai exporters from non-payment risks from overseas buyers afflicted by the global downdraft. In this connection, EXIM Thailand signed memorandums of understanding (MOUs) on the joint export credit insurance facility with 10 other financial institutions, namely, Bangkok Bank Public Company Limited, Krung Thai Bank Public Company Limited, Kasikornbank Public Company Limited, TMB Bank Public Company Limited, CIMB Thai Bank Public Company Limited, Siam Commercial Bank Public Company Limited, Siam City Bank Public Company Limited, Small and Medium Enterprise Development Bank of Thailand (SME BANK), Government Savings Bank and Islamic Bank of Thailand. This collaboration will provide the participating banks’ customers with a convenient access to EXIMSurance coverage as they can apply for the service directly with their primary banks. Moreover, since claim payments are transferable to lending banks, exporters can expand their export credit lines by utilizing EXIMSurance policy as additional loan collateral.
Further, EXIM Thailand launched a new facility called “EXIM 4 SMEs,” providing export credit insurance to SME exporters with annual export values not exceeding 100 million baht. This service will raise their confidence in starting or expanding export businesses in traditional or new markets despite increasing non-payment risks from overseas buyers caused by the global financial crisis. Under this new facility, EXIM Thailand will help examine buyer credit information and assess their payment ability, enabling Thai exporters to identify competitive payment terms. In case of payment default, the Bank will pay compensation in the amount of up to 90% of loss realized.
Additionally, EXIM Thailand joined hands with SME BANK and Small Business Credit Guarantee Corporation (SBCG) to support Thai gem and jewelry traders. Such collaboration between the two state-owned specialized financial institutions was established to furnish gem and jewelry entrepreneurs with both capital sources and other related services.
In the first quarter of 2009, EXIM Thailand earned a net profit of 75 million baht. As of the end of March 2009, the Bank had total assets of 57,546 million baht while the loans and accrued interest receivables stood at 48,432 million baht.