Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that in the first 3 months (January-March) of 2023, under its Thailand Development Bank role committed to national development alongside concerns for the society and the environment, EXIM Thailand approved new loans of 10,252 million baht in total, of which 4,022 million baht was for Small and Medium Enterprises (SMEs). The Bank's total outstanding loans amounted to 161,568 million baht, representing a year-on-year growth of 10,947 million baht or 7.27%, and 119,018 million baht of which was for investment which is a key mechanism to uplift the country's infrastructure, energy, logistics and industrial sectors, and to respond to the government policy to drive the Bio-Circular-Green Economy (BCG Economy). Its outstanding loans for ecofriendly projects amounted to 42,992 million baht, representing approximately 27% of total outstanding loans.
EXIM Thailand has remained steadfast in performing as a Lead Bank to synergize with its alliance networks in bringing Thai entrepreneurs to make a firm presence in international trade and investment. As such, as of the end of March 2023, the Bank recorded total outstanding loans of 60,759 million baht for international projects, of which 50,182 million baht was outstanding loans for projects in the CLMV and New Frontiers, which are principal markets under EXIM Thailand's target, representing more than 31% of its total outstanding loans.
Besides loan provision, amid global economic uncertainties, EXIM Thailand has vigorously fostered Thai exporters and investors' confidence and strengthened their immunity against risks through its export credit and investment insurance facilities. In the first quarter of 2023, EXIM Thailand recorded 50,342 million baht in export credit and investment insurance business turnover.
With firm determination to support Thai entrepreneurs in the forms of both credit and insurance facilities, as of the end of March 2023, EXIM Thailand has expanded its customer base to a total of 6,191, which was a 23.28% year-on-year growth, of which as high as 83.91% are SMEs. This has been a testament of EXIM Thailand's untiring supports for and moving alongside SMEs which are the country's key engine to drive the grassroots economy. EXIM Thailand has collaborated with Thai Credit Guarantee Corporation (TCG) in launching "One SMEs" pre- and post-shipment revolving credit facility to shorten SME credit underwriting turnaround time, and "EXIM for Little People Clinic" which provides financial health check and advisory services for business problem solutions on a full-fledged basis, and has so far recorded 670 advice recipients. In addition, the Bank has rolled out "EXIM Green Start Credit" to promote ecofriendly businesses that care for minimizing impacts on the environment. EXIM Thailand is the first bank that has applied Thailand Taxonomy to its credit underwriting process leveraging on its expertise in export and investment promotion in such dimensions as knowledge, opportunity and capital to "fill knowledge gap, fill opportunity gap and fill capital gap" for Thai entrepreneurs so that they would be able to firmly start up their businesses and sustainably expand their businesses on the global front. As of the end of March 2023, the Bank's financial and non-financial supports have been rendered to around 24,000 entrepreneurs, involving a total amount of more than 91,200 million baht.
Meanwhile, EXIM Thailand has attached high importance to sustainable financial management. The Bank recorded total NPL amount of 5,168 million baht with NPL ratio of 3.20% as of the end of March 2023, and set aside allowance for expected credit loss of 13,151 million baht, hence NPL coverage ratio of 254.45% which is a level of strong financial status. The Bank thus posted a pre-provision profit of 678 million baht and a net profit of 305 million baht as of the end of the first quarter of 2023.
"For 2023, EXIM Thailand has been and will still be committed to consistently support Thai entrepreneurs alongside national development, particularly regarding such target industries as S-curve industries and those conducive to BCG economy. We aim to respond to the government policy and international standards by developing our financial products, services and innovations to boost Thai entrepreneurs' potential and drive Thailand toward a sustainable future," added Dr. Rak
Source: EXIM Thailand
