Thailand's KTB, Exim Bank provide attractive SME loans

Krungthai Bank will increase its SME loans by Bt55 billion this year.

This represents an 18 percent of its outstanding loans of Bt320 billion.

According to Prasit Wasupath, First EVP of KTB, it will focus on industries with growth potential, led by food and agriculture, energy, and auto and electronic parts, as well as on traders in border provinces.

For SMEs in manufacturing and services that rely intensively on labour, KTB has designed two loan programmes to support employment and boost productivity.

The bank is cooperating with the Federation of Thai Industries, the Thai Chamber of Commerce and Chulalongkorn University to assist customers in preparing for the AEC via the "Krungthai Modern Management for SMEs" programme.

Meanwhile, the Exim Bank of Thailand is providing export credit insurance services tailored to meet the needs of every type of export business, particularly SMEs with annual exports not exceeding Bt200 million. The lending programme is offering lower premiums, fast approvals and no claim bonus with an aim to support business start-ups or expansion.

The service protects SME exporters against non-payment risks so that they can offer more competitive payment terms to their overseas buyers. Besides, the insurance policy can be used as loan collateral.

Kanit Sukonthaman, president of Exim Bank, said the economy was expected to expand further this year due to rising domestic demand.

Export growth is likely to be propelled by the global economic recovery and the establishment of the AEC in 2015. To mitigate further exchange risk from the strengthening of the baht, exporters can buy foreign-exchange forward contracts.

Such facilities of Exim Bank will let exporters, particularly SMEs with low risk tolerance, expand with more confidence and take full advantage of export opportunities emerging in 2013.

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