Exim to fund foreign ventures

The Export-Import Bank of Thailand has said it would support local corporations who seek to invest in providing goods and services and plan to invest in neighbouring countries where the business climate is not quite conducive. 

Exim Bank will help alleviate some of the business risks for Thai companies by providing insurance coverage for risks associated with business, investment and politics. It will also provide liquidity to them. 

The bank will continue to support large projects that are beneficial to Thailand, especially those relating to power generation, alternative energy, logistics and basic infrastructure, president Kanit Sukonthaman said yesterday.  The bank has financed 11 vessels totalling Bt1.68 billion as part of its support for the country’s maritime business. 

International trade financing is expected to fall due to the weak global economy and the sluggish economies of some trading partners. 

The bank’s six-month net profit rose 27.92 per cent to Bt652 million from Bt510 million in the same half last year due to lower provisioning for doubtful loans while revenue was close to the same level as last year’s.

Exim Bank maintains an appropriate level of reserves. At end-June, outstanding loans were up by 3.95 per cent, or Bt2.54 billion, to Bt67.71 billion, while non-performing loans were up 4.22 per cent from the end of last year to Bt3.26 billion, or 4.82 per cent of outstanding loans. 

The bank increased its bank guarantees by 10 per cent to Bt80.32 billion by retaining existing customers and expanding export financing in line with the growth in trade among Asean nations, while damage compensation was minimal. 

This year, Exim Bank was assigned to support SMEs engaging in international trade. It has secured loan approvals of Bt5.2 billion for 114 more local SMEs. The bank, five ministries and five specialised financial institutions will assist local SMEs in securing funding.