The Export-Import Bank of Thailand (Exim Bank) plans to take a more active role in helping exporters expand into new export markets, according to its president, Sataporn Jinachitra.

There will be a new focus on smaller exporters. They will receive more assistance as they try to break into new and wider markets, including discounted letter of credit (L/C) processing he says.

New markets

Exim Bank's new focus is a result of changing market conditions that have prompted it to shift the role it plays in Thailand's export efforts. According to Jinachitra, there is plenty of liquidity in the local market, thus he expects commercial banks to play the main role in providing trade credit to exporters.

As a result, the state-owned export credit agency would shift its focus to assist small exporters and provide advisory services helping Thai companies penetrate new export markets.

L/C processing

The bank will roll out a new discount programme for L/C processing fees and charges for exporters to access market information.

The Exim Bank would also co-ordinate with the Small and Medium Enterprises Promotion Office to assist potential exporters, as well as work with larger businesses looking to expand their production facilities in overseas markets.

More credits

Turnover from L/Cs was 109.62 billion baht in 2004, up 56.5 per cent from the previous year, while turnover from credit insurance was 30.30 billion baht in 2004, up 7.2 per cent from the previous year.

Jinachitra says the bank projects loan growth of 10 per cent this year, compared with 4.6 per cent growth in 2004.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.