Bangkok--10 Sep--EXIM Thailand
EXIM Thailand in collaboration with 9 other banks re-launched export credit insurance facility (EXIMSurance) at “EXIMSurance Alliance Fair” on September 9-10, 2010 between 10.00 to 22.00 hrs., at Fashion Hall, 1st Floor, Siam Paragon, amid a twofold increase in foreign buyers’ insolvencies during the past few years.
Dr. Sathit Limpongpan, Permanent Secretary, Ministry of Finance, presided over the opening ceremony of “EXIMSurance Alliance Fair” on September 9, 2010, at Fashion Hall, 1st Floor, Siam Paragon. Jointly organized by Export-Import Bank of Thailand (EXIM Thailand) and 9 other banks, namely, TMB Bank Public Company Limited, Islamic Bank of Thailand, Government Savings Bank, Bank of Ayudhya Public Company Limited, Kasikornbank Public Company Limited, Krung Thai Bank Public Company Limited, Siam Commercial Bank Public Company Limited, Bangkok Bank Public Company Limited and Siam City Bank Public Company Limited, the fair took place on September 9-10, 2010 between 10.00 to 22.00 hrs. at Fashion Hall, 1st Floor, Siam Paragon. The event aims to promote export credit insurance service and features advisory services on EXIMSurance and other financial services as well as privileges relating to overseas trade transactions. Exporters could also register to apply for special privileges, such as discount on overseas buyer/bank risk assessment fees. For further information, please call 0 2617 2111 ext. 2733-7.
The collaboration between EXIM Thailand and 9 other banks provides the participating banks’ customers with easy access to EXIM Thailand’s export credit insurance 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 EXIM Thailand’ export credit insurance policy as additional loan collateral. With EXIM Thailand’s export credit insurance, exporters can propose more competitive payment terms and conditions to buyers in more than 200 countries worldwide. The insurance facility covers commercial risks incurred from buyer’s bankruptcy, buyer’s refusal to pay or take delivery of goods sold as well as political risks derived from restriction or prohibition of hard currency remittance, new regulation prohibiting importation, occurrence of war, revolution or riot that obstructs payment. The rate of indemnity is up to 90% of loss realized. In addition, EXIM Thailand helps analyze buyer’s credit worthiness and assists in debt collection in case of buyer’s non-payment. Such support will help Thai exporters maintain their shares in existing markets and increase their presence in new markets, while enhancing Thailand’s chance of achieving the targeted gross domestic product growth.
According to a leading international credit insurance agency, the number of business insolvencies in 2009 increased from year 2008. For instance, business insolvencies in the United States amounted to 60,837 in 2009 (up from 43,546 in 2008 and 28,322 in 2007). Meanwhile, the figures in Western Europe rose to 205,472 in 2009 (up from 172,012 in 2008 and 148,912 in 2007, respectively).
Since the launch of export credit insurance in 1995 until the end of 2009, 80% of EXIM Thailand’s total claim payments were caused by buyer’s non-payment, 18% buyer’s bankruptcy and 2% buyer’s refusal to accept products delivered. The largest proportion of claims derived from buyers in the jewelry and accessories business (54.5%), followed by those in other industries such as automobile equipment and parts (8.7%), canned food (8.2%), furniture (7.7%) and plastic products (4.4%).