Exim Bank improves loan terms for SEZs
The Export-Import Bank of Thailand has improved its investment loans for special economic zones by offering lower interest rates while also providing short-term credit to meet customer demands, the bank's acting president Kematat Saicheur said.
He said that during his visits to various provincial chambers of commerce, many entrepreneurs indicated an interest in the bank’s new financing facility for investment projects in the SEZs.
With a maximum loan repayment period of 15 years, a two-year grace period and a fee exemption, the facility generally offers more attractive conditions than commercial banks, he said.
To encourage investment and business expansion in the SEZs, industrial estates and border areas in line with government policy, Exim Bank has decreased its long-term interest rates for the financing facility for investment projects in the zones even further.
Kematat said that in response to demand, clients eligible for the 15-year loan will receive short-term working capital credit lines so those located in targeted areas can expand their production capacity and boost sales.
The amount and repayment period of these short-term loans must not exceed the long-term loan granted.
Disbursements can be made in baht or US dollars, while promissory notes can be issued for no more than 180 days.
The interest rates for baht- and dollar-denominated loans are a prime rate of 1.50 per cent per annum and Libor (London Interbank Offered Rate) of 3.50 per cent per annum respectively.
The purpose of the financing facility for investment projects in SEZs is to promote investment in more than 50 SEZs and industrial estates throughout the country.
The loans are targeted at the man?ufacturing, trading and logistics industries as well as warehouse services and distribution centres deemed beneficial for economic development.
The businesses range from local to national to Asean level, with the main target the five Phase 1 SEZs at Tak, Mukdahan, Sa Kaew, Trat and Songkhla.
The facility’s coverage will also be extended to another nine planned SEZs.
