Exim Bank launches special soft loan scheme to help entrepreneurs amid Covid-19 crisis
The Export-Import Bank of Thailand has rolled out a soft loan scheme for businesspersons affected by Covid-19 – a 7-year credit facility with a maximum credit line of Bt20 million per entrepreneur at a special interest rate of 2 per cent per annum in the first two years.
The bank also has a revised scheme for its existing customers, with extension of exporters’ payment terms under insurance coverage for a maximum of 270 days.
Exim Thailand president Pisit Serewiwattana explained that the Exim Soft Loan for Entrepreneurs Affected by Covid-19 scheme is a long-term credit facility with a maximum credit line of Bt20 million per entrepreneur at a special interest rate of 2 per cent per annum in the 1st and 2nd years, a prime rate of 1.25 per cent in the 3rd and 4th years, and a prime rate of -0.25 per cent in the 5th and 6th years (the prime rate as of March 31, 2020, is 5.75 per cent), with a maximum repayment period of seven years, as well as a free TCG guarantee fee in the first 2 years and a free front-end fee for entrepreneurs to use as a revolving fund in export-related businesses hit directly or indirectly by the virus situation.
Entrepreneurs may apply for the service from today until December 30, 2020.
Exim has also expanded the criteria under its Debt Suspension Scheme for exporters:
• Credit facility suspension of principal and interest debt payment for six months for customers with long-term and short-term credit lines and impacted by the Covid-19 situation. Clients may apply for the service from today until December 31, 2020.
• Export credit insurance facility extension of payment terms under insurance coverage for a total period of up to 270 days for credit insurance clients exporting to countries hit by the coronavirus spread. Interested clients can get in touch with the bank from today until July 31, 2020. In case the period does not exceed 180 days, no additional insurance premium is required. And in the case of extension of more than 180 days, but not over 270 days, an additional insurance premium of 50 per cent is required.
There is also free additional coverage for perishable exported goods shipped to and rejected by Chinese buyers as a special case at a rate of 50 per cent of the value of the invoice, and shortening of the period for considering payment of insurance claims in case delivered goods are rejected by buyers in China.
Those seeking further information are requested to contact the Sustainable Development and Corporate Communications Department via phone numbers 02271 3700, 02278 0047, 02617 2111 extn 4120-4.
