EXIM Thailand Announces Results of Debt Suspension and Extension of Soft Loan Schemes to Assist Clients and Exporters, Particularly SMEs, amid COVID-19 Pandemic

Stocks and Financial Services Press Releases Monday May 25, 2020 12:45
Bangkok--25 May--EXIM BANK

Mr. Pisit Serewiwattana, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that EXIM Thailand has assisted and relieved impacts on the Bank’s clients and general entrepreneurs engaging in export and import businesses as well as Thai investors hit by the COVID-19 spread through several measures and schemes. The Bank has contacted all the clients to inquire about the problems they are facing and make available for them financial packages that suit their business requirements. As of May 15, 2020, EXIM Thailand rendered assistance to over 4,100 clients affected by the COVID-19 economic disruption, representing around 13% of Thai exporters, and involving 50,000 million baht in total credit lines as well as generating more than 200,000 million baht in international trade business turnover. In addition, more than 1,100 business entities have approached the Bank for export-related advice and participated in online training and seminars held by EXIM Excellence Academy.

EXIM Thailand’s measures and schemes to support affected clients and businesses related to exports are as follows:

Suspension of principal and interest debt payment for 6 months for the clients affected by the contagion directly and indirectly.Extension of payment term under insurance coverage for a total period of up to 270 days for the Bank’s export credit insurance clients against non-payment of buyers in the countries affected by the COVID-19 outbreak according to the report of World Health Organization (WHO).Soft loans with interest rate of 2% per annum to enhance business liquidity for clients and exporters.7-year term credit facility for clients and general entrepreneurs with a maximum credit line of 20 million baht at a special interest rate of 2% per annum in the 1st and 2nd years2-year short-term credit facility for clients having group’s credit lines with the Bank not exceeding 500 million baht. Maximum additional credit line is 20% of outstanding credit of each respective borrower as at year-end 2019 at a special interest rate of 2% per annum, with an interest grace period in the first 6 months and no charge for front-end fee, cancellation fee, commitment fee and prepayment fee.   Loan for employment credit for business entities related to export and investment overseas with a maximum credit line of up to 15 million baht per business entity at a minimum interest rate of 3% per annum for a 7-year maximum loan period.Investment and production efficiency enhancement credit facility with an interest rate of 2% per annum and a maximum credit line of 100 million baht for a 7-year maximum loan period.Credit facility to support agricultural goods, such as fruits and rubber.   Provision of phone-in financial advice via Tel. 0 2617 2111 ext. 3510-2 and online training program for Thai entrepreneurs free of charge to promote Thai export to a greater extent.

EXIM Thailand has worked closely with the Ministry of Finance and the Bank of Thailand to ease the hardship of its clients and exporters in general through such schemes as principal and interest debt suspension and provision of soft loans to boost their liquidity with lower than normal interest rates, extension of payment term under export credit insurance coverage so that entrepreneurs are more confident in offering longer or better trade credit terms without concerns about non-payment of foreign buyers, and integrating collaboration with relevant public and private entities including the Board of Trade of Thailand, the Federation of Thai Industries, Ministry of Commerce, Ministry of Agriculture and Cooperatives, Ministry of Industry, Ministry of Foreign Affairs and the Bank’s representative offices in Yangon, Vientiane and Phnom Penh to provide beneficial economic information and business analysis articles and give guidance on business opportunities and channels for Thai entrepreneurs in markets beyond Thailand, especially the neighboring CLMV (Cambodia, Lao PDR, Myanmar and Vietnam) which still require a large volume of Thai consumer goods even amid the COVID-19 pandemic.

“EXIM Thailand has closely monitored the situation and the problems faced by our clients and Thai entrepreneurs in businesses related to export and investment. We have also consistently rolled out assistance schemes to ease impacts on their businesses from cutting the MLR, MOR, and especially MRR to 5.75% per annum, which is the industry lowest, since the middle of March 2020 to support exporters, particularly SMEs. The Bank has also provided available financial packages and beneficial news and information to the clients and interested exporters. This aims to ensure that they are well prepared in terms of funds and knowledge as well as business networks to cope with the current situation and the changing consumer behaviors that are shifting from the old norm toward the new normal circumstance that will come with fresh business opportunities,” added Mr. Pisit.

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