FRIDAY, March 29, 2024
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EXIM introduces export credit insurance

EXIM introduces export credit insurance

The Export-Import Bank of Thailand (EXIM Thailand) is ready to support Thai exporters’ in this era of global trade-on threats through export credit insurance and buyer risk assessment, it announced on Monday

 

 

 


The bank’s president Pisit Serewiwattana notedc that  entrepreneurs have to constantly keep abreast of global situations and developments, technological changes, trade and investment opportunities as well as trade crimes in the new era. At present, trade transactions between Thai exporters and buyers abroad are mainly carried out online. It may thus be difficult to authenticate or check the credit worthiness of buyers, especially as criminals tend to increasingly devise new techniques to hack and falsify business information between trade counterparts or disguise themselves as trade counterparts to seek benefits and deceive the other parties into transferring money to their accounts. Such cybercrimes may be committed by hackers or disguised trade counterparts using forged business cards to deceive exporters into delivering goods to the address of the criminals who can re-sell the goods. Thai importers can also mistakenly make payments to the criminals’ accounts.
Pisit said that, in managing international trade risks, Thai exporters can use a hedging tool like export credit insurance. EXIM Thailand is the only Thai financial institution that offers an export credit insurance facility based on its more than 25-year expertise and experience. Buyer risk assessment and export credit insurance services are now available in various forms to respond to the needs of Thai entrepreneurs and include flexible conditions suitable for SMEs or exporters of goods to neighbouring countries. 
The EXIM Thailand president added that the bank serves as a financial intermediary to support Thai export start-up and expansion. Besides provision of credit facilities, the Bank is offering a range of risk management tools for Thai exporters, starting from analysing credit worthiness of buyers or buyer banks overseas before finalising payment and credit terms. Each exporter can choose the type of insurance to safeguard against non-payment by buyers abroad, hence gaining more confidence in international trade, even in cases where they are dealing with a new trade partner or a new market. During the first five months of 2019, 12 export credit insurance clients filed for compensation in the amount of Bt87.50 million. 
“According to foreign export credit insurance agencies, 10 per cent of buyers placing purchase orders with a request for credit terms end up postponing payment, missing payment, refusing to take delivery of goods, or fall into bankruptcy. Thai exporters may be affected by the financial distress of offshore buyers. For this reason, EXIM Thailand is offering a financial tool to help them hedge international trade risks. This will not only safeguard against non-payment, but also allow for follow-up of problem debts. The insurance facility can also placed as collateral security for loans from EXIM Thailand or commercial banks,” Pisit added.

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