EXIM Thailand Cuts Interest Rate for General Customers and SMEs to the Lowest among SFIs at 5.985% Coupled with Special Credit Scheme to Boost Economy

Stocks and Financial Services Press Releases Friday February 7, 2020 14:01
Bangkok--7 Feb--EXIM BANK

EXIM Thailand announced reduction of prime interest rate for customers in general and SMEs (which normally receive MRR rate from commercial banks) from the existing rate which is the lowest in SFIs industry to only 5.985% per annum, effective from February 11, 2020, in conjunction with a special credit program to promote Thai entrepreneurs' business operations including importing of machinery and production technology for expansion of production capacity or factory improvement at the interest rate lower than the prime rate, i.e. 2% per annum.

Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that at present EXIM Thailand's prime interest rate applicable to general customers and also SMEs [which normally borrow from commercial bank at the Minimum Retail Rate (MRR)] at 6.00% per annum, the lowest among the state-owned specialized financial institutions (SFIs). It is because EXIM Thailand has taken the lead in lowering interest rates to help Thai entrepreneurs, particularly SMEs, save international trade operating costs since November 2019. However, in response to the government policy to stimulate the economy and in line with the policy rate direction as well as to recognize the importance of SMEs who are in a large number and have a significant role in driving Thai economic growth, EXIM Thailand has further cut down its prime interest rate to 5.985% per annum, taking effect from February 11, 2020 onward.

Mr. Pisit said that, under the current circumstances where the policy rate has been slashed to a record low and the baht has continued weakening to stay at 30-31 baht against the US dollar, which is 15% stronger compared with 2016 when the baht was approximately 36 baht against the US dollar. It is thus a good timing for Thai entrepreneurs to import machinery and new production technology for their production efficiency improvement which would enhance their competitive advantage in the long run. EXIM Thailand has thus developed an array of financial facilities to serve import and investment alongside liquidity enhancement scheme to boost export in alignment with Thai and global economic outlook and with special interest rates lower than the prime rate for entrepreneurs of all sectors and all sizes as follows:

  • EXIM Investment and Production Efficiency Enhancement Credit Scheme: Offering of long-term loan facility to encourage entrepreneurs in all industrial sectors to purchase and improve their machinery and equipment or factories in order to uplift production efficiency and add value to Thai export goods, with a special interest rate of 2% per annum in the first 2 years.
  • EXIM Liquidity Enhancement for Exporters Scheme: Aiming to support SMEs that are exporters, importers for export-oriented producers, and producers for exporters, with offering of short-term and long-term loan choices to reduce their debt repayment burden and increase their business liquidity with higher working capital to fund their export activities or improvement of their machinery, factories, manufacturing technology, etc., with a special interest rate of 3.99% per annum in the first 2 years.
  • EXIM Happier Credit: With interest rate of 5.50% per annum in the first year for export start-ups.
  • EXIM Value Added Credit: With interest rate at prime rate -1.25% per annum in the first 2 years for SMEs, particularly those in the agro-based and bio-tech as well as food processing industries.
  • EXIM CLMV SMEs Credit: For SME exporters to CLMV (Cambodia, Lao PDR, Myanmar and Vietnam), with interest rate at prime rate -1.75% per annum throughout the project term.
  • EXIM for M Credit, EXIM Nego for M Credit and EXIM Special Zone Credit: With minimum interest rate at prime rate -2.00% per annum for medium and large entrepreneurs.

Moreover, EXIM Thailand has offered a diverse range of financial facilities for entrepreneurs to cope with the current economic circumstances and challenges looking forward. These facilities include Debt Suspension Scheme for Exporters Amid Coronavirus Outbreak under which suspension of principal and interest payment is granted for a maximum of 6 months for EXIM Thailand's customers with long-term and short-term credit lines who are affected by the spreading novel coronavirus 2019, together with expansion of insurance protection for exporters after shipment or those in the process of shipment to China, and SMEs R&D and Innovation Credit as well as Export Credit Insurance for exporters in general and SME exporters, application for which has been made easier and speedier, etc.

"EXIM Thailand believes that the close collaboration between the public and private sectors will drive Thailand's economic growth in a sustainable manner as expected by all parties concerned in the backdrop of numerous challenges weighing on Thai economy and economies around the world. We are committed to performing our duty of providing financial tools for Thai entrepreneurs in all sectors to ensure they have adequate financial liquidity and lower operating costs in a short term and also to boost their competitiveness in the global trade of the new era in a longer term," added Mr. Pisit.

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