InfoQuest, (April 1, 2020) -- Mr. Phisit Sareewiwatthana, managing director of the Export-Import Bank of Thailand (EXIM Thailand) revealed that the bank has launched long-term low-interest loans designed to assist those affected by the Covid-19 epidemic. Each client can receive up to 20 million baht credit line at an interest rate of 2 percent in the first and second years, at the prime rate minus 1.25 percent in the third and fourth years and at the prime rate minus 0.25 percent from the fifth to seventh years (the prime rate on March 31, 2020 was 5.75 percent). The maximum repayment period is 7 years and the guarantee handling fees of Thai Credit Guarantee Corporation (TCG) and the Front-end Fee will be exempted in the first two years. And enterprises can use these funds as working capital of their export businesses directly or indirectly hit by the Covid-19 epidemic. Clients can apply for the above services from now until December 30, 2020.
In addition, EXIM Thailand has relaxed the conditions for EXIM measures to reduce the burden on Thai exporters and help fight the epidemic. The details are as follows:
In terms of loans, the bank suspends the principal and interest repayment for 6 months to reduce the burden on long-term and short-term loan customers affected by the Covid-19 epidemic. Related clients can apply before December 31, 2020.
In terms of export insurance, the bank extends the premium payment period by 270 days at the maximum for Thai exporters who have EXIM Thailand export insurance policy and export products to countries on the list of countries affected by Covid-10 announced by the World Health Organization (WHO). Related clients can apply before July 31, 2020.
For those delaying premium payment for no more than 180 days, no additional premium will be charged.
For those delaying premium payment for 180 days to 270 days, an additional premium of 50 percent of the insurance premium will be charged.
If perishable exports are rejected by Chinese buyers, the premium for 50 percent of the invoice amount at the maximum will be exempted. In addition, the bank also shortens the time for granting compensation for loss due to Chinese buyers' refusing to receive goods.
"The Covid-19 epidemic has had a wide-ranging impact on virtually all industries. EXIM Thailand is keeping a close eye on the situation, and introduces in time new measures and special credit plans to help Thai customers and businesses, especially SMEs that have difficulty in maintaining business operation in such a situation. By doing so, it aims to reduce impact on employment and production of products demanded by both domestic and foreign consumers, help the business world bail out of difficulties, mitigate impact on the Thai economy and the world economy currently and in the future," said Mr. Phisit.
Source: InfoQuest, by Rachada Kongkhunthian/Sasithorn, translated by Xinhua Silk Road.
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