Thailand's Krungthai Bank is to make letters of credit (L/Cs) available to small- and medium-sized enterprises (SMEs) looking to realise their export potential.

The state-owned bank, which also serves as a government channel for financial services in support of governmental initiatives, is making the L/Cs available alongside a credit line that provides around US$140 million worth of soft loans with low interest rates.

The loans support the government's SME and export development efforts, and will be available to firms with annual turnover below 500 million Thai baht (Bt500 million - US$14 million).

Export potential

Small firms with export potential will be able to participate in a training course in international trade, which includes an L/C module.

After successfully completing the course, SMEs will be eligible to access the bank's soft loans.

Loan packages

The bank will offer two loan packages. The first carries an interest rate of 3.75 per cent for the first year and the second an interest rate of 3.9 per cent for the first year.

To qualify for the first package, SMEs are required to have collateral worth 30 per cent of the credit line of up to Bt55 million.

For the second package, no collateral is required but the credit line is limited to Bt40 million.

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