President Apichai Boontherawara said yesterday the bank planned to lift capital from the current Bt7 billion to expand business over the next four years.

According to the three-step recapitalisation plan, Exim Bank will increase capital by Bt5 billion next year, Bt2.5 billion in 2009 and Bt2.5 billion in 2010 .

Apichai said the bank recorded net earnings of Bt699 million last year, which was 53 per cent higher than 2005. However, it also set aside Bt2.05 billion for reserves under the central bank's International Accounting Standard 39 (IAS39) requirement, which has to be met by the end of this year. Exim Bank therefore recorded a net loss of Bt1.35 billion, while its capital-adequacy ratio was 14.3 per cent at last December.

Apichai said it planned to generate a net profit of Bt300 million to Bt400 million this year, lower than for last year but in line with slower economic growth. It targets lending growth for this year at Bt26 billion.

It plans to issue Bt10 billion to Bt15 billion worth of US-dollar and baht bonds this year to support lending. "The first lot of bonds is likely to be in the first half. It will be worth at least Bt3 billion," he said.