Exim Bank's acting president lays out strategy for 2015
The Export-Import Bank of Thailand this year will continue its role of offering integrated financial solutions to exporters, export-related entrepreneurs, investors, and particularly small-scale entrepreneurs wishing to commence or expand their export bus
The bank is rolling out five new products this year. They are “SMEs Export Delight”; a product to facilitate border trade by small and medium-sized enterprises; one for SMEs’ relocation and expansion; a financing facility for special economic development zones; and “Buyer’s Plus Supplier’s Credit”.
Relying on its strengths in export credit insurance and experience in regional trade finance support, particularly in the CLMV (Cambodia, Laos, Myanmar and Vietnam) sub-region, Exim Bank aims to provide Thai ex-porters and export-related enterprises with needed liquidity coupled with international trade insurance coverage to enable them to start up or expand their trade or investment activities with confidence, Suthanai said.
Exim Bank registered a net profit of Bt377 million in the first quarter and total credit outstanding of Bt71.88 billion. This resulted from an increase in new loan disbursement in the amount of Bt3.03 billion, coupled with some loan repayment.
At the end of first quarter, the ratio of non-performing loans (NPLs) stood at 5.67 per cent, accounting for Bt4.07 billion. Provisions for doubtful accounts totalled Bt4.92 billion, Bt2.73 billion of which was set aside to comply with the Bank of Thailand’s regulations, representing a ratio of loan-loss provision against the central bank’s requirement of 180.06 per cent, Suthanai said.
He said that Exim Thailand’s core business comprised two main facilities: financing and insurance.
During the first quarter of 2015, business turnover derived from the bank’s financing activities amounted to Bt32.2 billion. Outstanding loans were Bt71.88 billion, while new loan disbursement totalled Bt3.03 billion.
Meanwhile, business turnover under export credit insurance and investment insurance accounted for Bt20.77 billion, of which Bt2.14 billion came from SME business turnover or 10.31 per cent of the overall insured amount.
Exim Thailand’s financing facilities include trade finance (20 per cent) and medium-to-long-term loans for investment projects (80 per cent), while the bank’s insurance business consists of export credit insurance (91 per cent) and investment insurance (9 per cent).
Giving priority to small and medium-sized exporters, Exim Thailand has fostered cooperation with relevant public and private agencies, resulting in an expansion of the bank’s SME customer base to 84.03 per cent of the overall customer portfolio. Exim Bank’s new SME loan approvals amounted to Bt3.46 billion, with an aggregate SME loan amounting to Bt57.45 billion, and outstanding loans to SME exporters worth Bt23.15 billion out of the bank’s total loan outstanding of Bt71.88 billion.
With respect to Exim Thailand’s role in financing projects in support of the government’s strategic plan and policy, including renewable energy development, telecommunication-related infrastructure development, merchant marine and logistics financing, at the end of the first quarter, the bank had approved term loans for national development projects in the amount of Bt58 million with an aggregate loan approval amount totalling Bt18.73 billion and loans outstanding worth Bt11.82 billion.
In sync with Exim Thailand’s vision to be a bank that paves the way for new opportunities for Thai businesses in the global arena, particularly in the Asean Economic Community, the bank approved international project financing facilities in the amount of Bt74.91 billion. New loan approvals accounted for Bt1.85 billion while loans outstanding at the end of the first quarter were Bt36.85 billion. In addition, risk-mitigation facilities to promote investment in the AEC expanded consistently, reaching Bt23.62 billion.
