Bangkok--27 Jul--EXIM
Deputy Finance Minister reiterates policy guideline for EXIM Thailand to extensively boost its export, import and investment promotion capabilities. Having registered a net profit of 104 million baht in the first half of the year 2009, EXIM Thailand plans to launch two new facilities, “EXIM for Your Suppliers” and “Buyer’s Credit” while adding four sub-branches to its branch network by the end of this year.
Mr. Pruttichai Damrongrat, Deputy Minister of Finance, delivered policy directives to board members and executives of Export-Import Bank of Thailand (EXIM Thailand) on his official visit to EXIM Thailand’s Head Office on July 27, 2009. The Deputy Finance Minister emphasized the need for EXIM Thailand to earnestly promote and support exports, imports and investments for the benefit of the Thai business sector and national development. To achieve such goal, EXIM Thailand should proactively assist Thai entrepreneurs in creating business opportunities, tackling problems and obstacles, as well as mitigating risks arising from international trade so that they can retain existing markets while penetrating new ones. Import of capital goods, machinery and production technology should be promoted, taking advantage of the strong baht while enhancing exporters’ production capability to enable them to compete more successfully in the upper markets. Furthermore, EXIM Thailand needs to gear up its role as “development bank” by supporting domestic investments beneficial to the advancement of Thai exports and economy in the long term, such as infrastructure, logistic system, and energy and alternative energy development. In this connection, the Finance Ministry is prepared to support EXIM Thailand both via capital injection to bolster EXIM Thailand’s development capability and establishment of an investment promotion fund for Thai businesses overseas.
Meanwhile, Dr. Apichai Boontherawara, EXIM Thailand’s President reported the Bank’s operating results for the 2009 first half. During the first six months of 2009, EXIM Thailand approved new loans and export credit insurance in the total amount of 13,372 million baht to support Thai exporters and investors. An addition of 12,992 million baht is earmarked for other loans under negotiation. Earning a net profit of 104 million baht in the year’s first half, the Bank is expected to achieve its goal of 19,700 million baht in new credit approval for 2009.
As of the end of June 2009, the total loan outstanding amounted to 46,214 million baht. Export credit insurance outstanding totaled 13,071 million baht while the Bank’s total assets stood at 59,628 million baht. With non-performing loans (NPLs) totaling 4,113 million baht, NPLs ratio declined from 9.24% as of end-2008 to 8.84%, due to the successful correction of the NPLs amount of 1,522 million baht in 2009 first half. The Bank also expects to gain another 1,000 million baht from NPLs reduction in the second half of the year.
Since the beginning of 2009, EXIM Thailand has accelerated its business expansion and service offering to help alleviate the adverse economic impacts on Thai exporters. As a result, EXIM Thailand signed memorandums of understanding (MOUs) on the joint export credit insurance facility with 10 other financial institutions, aiming to extend its EXIMSurance, a host of export credit insurance facilities, to cover non-payment risks from overseas buyers for participating banks’ customers. Moreover, since claim payments are transferable to lending banks, exporters can expand their export credit lines by utilizing EXIMSurance policy as additional loan collateral. New approval of EXIMSurance in the first half of 2009 reached 2,695 million baht, compared to 1,547 million baht for the year 2008.
In March 2009, EXIM Thailand launched a new facility called “EXIM 4 SMEs,” an export credit insurance product for SMEs with a premium rate 35% lower than the normal export credit insurance policy and a convenient one-week application approval period. Moreover, within the third quarter of 2009, EXIM Thailand will introduce two new facilities. “EXIM for Your Suppliers,” is designed to increase liquidity of EXIM Thailand customers’ suppliers. Another product, “Buyer’s Credit,” is aimed at enhancing purchasing power of foreign importers while promoting export of Thai goods and services. Currently, EXIM Thailand has forged alliance with foreign banks to promote import of Thai goods and services. In May 2009, EXIM Thailand extended the Revolving Trade Financing Facility (RTFF) to PT. Bank Ekspor Indonesia (Persero) and will later on sign the RTFF agreement with four other banks in Russia. The total amount of RTFF offered to overseas banks so far has reached 97 million US dollars.
Further, EXIM Thailand is revamping its branch operation and has opened sub-branches under the “One Branch Two Banks” or dual-bank branches program in collaboration with the Government Savings Bank (GSB). By sharing expertise, building space and other resources, EXIM Thailand and GSB join hands to better serve their customers in both business and residential districts. The “One Branch Two Banks” service is now available at three EXIM Thailand’s sub-branches in Bang Rak, Wongwian Yai and Om Yai. Other four sub-branches to be open in the second half of this year will be located in Sathu Pradit, Thiwanon, Chakkrawat and Surat Thani.
EXIM Thailand continues to actively pursue its “development banking role” and is committed to consolidate its cooperation with overseas financial institutions and its Greater Mekong Subregion partners. In February 2009, with Sumitomo Mitsui Banking Corporation and Daiwa Securities SMBC, EXIM Thailand presented a proposal to Lao PDR to execute the Asian Bond project. The Asian Bond will serve as an alternative funding source for the Lao PDR’s major investment projects, such as a hydro-electric power plant. The Bank also signed a Cooperation Agreement with Banque Pour Le Commerce Exterieur Lao (BCEL) to promote international trade and investment between Thailand and Lao PDR through information exchange, experience sharing and business opportunities creation. Additionally, Japan Bank of International Cooperation (JBIC) has recently conducted a Project Finance training program for EXIM Thailand staff.
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