The Investment and Production Efficiency Enhancement Credit Scheme offers a long-term credit facility to assist entrepreneurs in export-related businesses and importers of machinery and equipment for national development in their access to financial sources or improvement of machinery and equipment or modification of factories with a view to reduction of cost and uplifting production efficiency, with credit line of up to 100 million baht per entrepreneur, special interest rate of 2% per annum in the first 2 years, and a maximum tenor of 7 years including a grace period of 1 year. The credit facility can be secured by a letter of guarantee from Thai Credit Guarantee Corporation (TCG) together with a personal guarantee. Free! TCG guarantee fee for 4 years and front-end fee, in conjunction with granting of forward contract in the amount of 1.5 times that of credit facility. Extended availability period of the scheme will be from today until June 30, 2021.
"The extension of the Investment and Production Efficiency Enhancement Credit Scheme is part of EXIM Thailand's packages to assist our clients and entrepreneurs in export-related businesses amid the virus spreading, which is in addition to the principal-interest debt suspension scheme for clients in the red, orange and yellow zones as well as the post-COVID-19 business rehabilitation packages for clients affected by the pandemic. This aims to support and enable our clients and entrepreneurs with potential to continue their business operations and keep growing. Meanwhile, the Bank will relax conditions for and take care of clients who have been in lack of liquidity so that they are allowed to extend the repayment period or undergo debt restructuring. This should help slow down NPL incurrence in the banking industry and drive expansion of Thai export and economy gearing up for global economic recovery that will come with fresh business opportunities," added Mr. Pisit.
Source: EXIM Bank of Thailand