Exim Bank told to lend more to SMEs

The Export-Import Bank of Thailand has been instructed to focus more on lending to small and medium-sized enterprises, particularly those involved in energy and logistics.

"The bank's lending portfolio should be doubled from Bt50 billion to Bt100 billion," Deputy Finance Minister Phichai Nariptaphan was quoted by Krungthep Turakij as saying yesterday.

To support expansion, Exim Bank's capital fund needs to be as large as Bt30 billion, he said. The bank now has Bt7.9 billion and will be allocated Bt1.3 billion as part of the 2009 fiscal budget.

"The Finance Ministry is ready to support the fund mobilisation, which could be a bond issuance of up to Bt5 billion in domestic or overseas markets," Phichai said.

Apichai Boontherawara, president of the bank, said that since the fund allocation is lower than the requested amount, the bank would have to limit its credit extensions to only sound projects.

The bank said it would continue to fulfil its role as a development bank by further promoting international trade, investment expansion by local firms and economic advancement.

Thai Exim International was incorporated in May. The bank's first overseas office in Moscow is expected to open next quarter with the objective of facilitating bilateral trade.

The bank will expand its collaboration with financial institutions including the Government Savings Bank to promote Thai businesses domestically and internationally.

The bank will also streamline its banking operations and human-resources management.

In the first half, the bank approved export and import credits and export credit insurance policies totalling Bt10.9 billion, with over Bt4.4 billion in committed credit lines awaiting contracts.

It also approved loans and export guarantees worth Bt10.9 billion and is in the process of signing more contracts worth Bt4.4 billion. It approved credits of Bt1.5 billion to support domestic businesses and promote infrastructure and logistics improvement.

Projects worth Bt3.4 billion are under consideration.

The Exim Bank ended the first half with a net profit of Bt58 million and assets of Bt59.6 billion, while its loans and accrued interest receivables stood at Bt52 billion.