Thailand’s Kasikorn Bank (KBank) and the Export-Import Bank of Thailand (Thailand Exim) have launched a facility to help exporters manage risks and enhance liquidity. The ‘K-Insured-Export Credit’ facility will allow exporters to use an export credit insurance policy as loan collateral. Total loans for the first year are expected to reach Bt4bn.
The facility will provide Thai exporters with an integrated export credit insurance-cum-financing service.
Exporters can obtain credit guarantee from Thailand Exim through KBank, and can use the Exim bank’s approval document as the guarantee for their applications for working capital loans from KBank.
President of KBank, Prasarn Trairatvorakul and president of Thailand Exim, Apichai Boontherawara, signed the memorandum of understanding on the joint export credit insurance facility on June 10.
According to Trairatvorakul, the facility will ease liquidity problems for exporters who suffer from delayed payments or defaults of overseas buyers. The service will guarantee export losses and increase working capital.
The facility will build up exporters’ confidence in establishing new contacts or expanding into new markets to compensate for declining trade volumes in traditional markets.
Reader Comments