Crisis boosts damage compensation

Exim Bank president Apichai Boontherawara said that from 2007-2009, 62 per cent of claims for compensation cited the failure of buyers to pay for the goods, 37.18 per cent blamed buyers' bankruptcies and 0.76 per cent said their goods were rejected.

The industry suffering the most problems in collections was jewellery and ornaments at 37.5 per cent, followed by canned food at 16.67 per cent, furniture at 12.50 per cent and ceramics at 12.5 per cent.

The bank recently paid Bt2 million to Beauty Gems Factory, a manufacturer and exporter of gems and jewellery, to compensate for the company's loss arising from an overseas buyer's collapse.

Since studies show that every minute, three companies across the globe go bust, exporters should take out credit insurance to protect themselves from possible losses, he added.

Yesterday, Kasikornbank signed up to provide Exim Bank's guarantee service through its branches, hoping to lend Bt4 billion this year under the scheme.

KBank president Prasarn Trairatvorakul said the K-Insured-Export-Credit service would ease liquidity problems for exporters facing delayed payments or defaults.

By guaranteeing export losses, the service would ensure customers had enough working capital.

Exporters can obtain a credit guarantee from Exim Bank through KBank, and use that as the guarantee for their application for a working capital loan from KBank.

Apichai said that to promote exports, Exim Bank would broaden the cooperation to other commercial banks.