Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that the CLMV (Cambodia, Lao PDR, Myanmar and Vietnam) has increasingly and consistently become a major export market of Thailand. In 2020, the CLMV ranked no. 4 among Thailand's major export markets, following the U.S., the original ASEAN member states and China respectively. However, Thai export to the CLMV stumbled in 2020 recording a contraction of more than 11%. The market has still been overwhelmed by multi-faceted problems in 2021, such as the prevailing COVID-19 pandemic and the tense situation in Myanmar. This has posed adverse impacts on Thai entrepreneurs engaging in export and investment in Myanmar, while in overall, the CLMV market still has economic growth potential and high demand for Thai goods and services. Liquidity enhancement for SMEs with adequate funding source for their international trade undertakings amid the surrounding challenges is accordingly crucial and swift remedial action is required. EXIM Thailand has thus released the following schemes:
- EXIM CLMV Comfort Credit Scheme offers a revolving credit facility to Thai entrepreneurs in the CLMV affected by the COVID-19 and economic slowdown, with a maximum credit line of 20 million baht per entrepreneur at a special interest rate of 3.99% per annum and a maximum repayment period of 3 years. The credit facility can be secured by a letter of guarantee from Thai Credit Guarantee Corporation (TCG) together with a personal or juristic person guarantee. Entrepreneurs may apply for the credit facility from today until November 30, 2021 via the Bank's website: www.exim.go.th. For further information, please contact the Bank's Head Office or any of its branches.
- EXIM Relief Scheme for Thai Entrepreneurs in Myanmar offers to the Bank's existing clients both principal debt suspension for a maximum of 12 months for long-term loans and roll-over of promissory notes for up to 180 days. To apply for assistance under the scheme, please contact the Bank's officers by September 30, 2021.
EXIM Thailand President further said that, from the Bank's close follow-up and assessment of the tough situation in Myanmar, Thai entrepreneurs have started to be affected by late payment for goods/services and orders suspended by buyers in Myanmar. EXIM Thailand has thus continuously worked out assistance measures as necessary up to present. The Bank currently has a total of over 200 clients in Myanmar, comprising both Thai exporters and investors, involving a total credit amount of approximately 5,300 million baht. The relief scheme should be able to reduce financial costs and boost liquidity for Thai entrepreneurs' business operations to some extent.
Besides the above financial assistance, EXIM Thailand is ready to render advisory support to Thai exporters and investors in Myanmar via Hotline Tel. 0 2271 3700 ext. 3009.
"The ongoing COVID-19 spread that has ravaged countries across the globe including Thailand and the CLMV since the beginning of 2020 coupled with other emerging factors have posed profound impacts on Thai entrepreneurs. Considering the CLMV as a new frontier market with high and long-term economic potential, we have untiringly worked out short-term relief and assistance schemes covering both credit facility and provision of advice with a view to sustaining business liquidity for Thai entrepreneurs pending the economic recovery of the CLMV," added Dr. Rak.
Source: EXIM Bank of Thailand