Exim bank targets 10% loan growth
Export-Import Bank of Thailand (Exim Thailand) said yesterday it is chasing 10% annual lending growth over the next decade, with a greater focus on loans tied to investment.
The state-owned bank expects to see outstanding loans reach 380 billion baht in the next decade, up from 85 billion baht at the end of this year, Exim Thailand president Pisit Serewiwattana said.
The bank saw total loans edge up to 70 billion baht at the end of 2016, it said.
This year it will focus on extending loans related to investment as only a few commercial banks offer financial products along these lines, he said. The bank wants to shift its ratio of investment-to-trade loans from 70:30 at present to 80:20, he added.
The bank’s policy does not allow it to compete with commercial lenders and it will not offer financial products that commercial banks already provide, according to Mr Pisit.
The new loans will support investment in government projects, including the Eastern Economic Corridor (EEC), while loans for trade will focus on exports to new markets where commercial banks have not offered the services.
Exim Thailand will first target Cambodia, Laos, Myanmar and Vietnam (CLMV), as well as Russia, Iran, South America and Africa for trade-related loans, he said.
It will encourage Thai investors to look overseas and recently opened a representative office in Myanmar, with three more planned for the CLMV market.
Under its 10-year master plan, the bank wants to position itself as a leading specialist financial institution, Mr Pisit said. This is seen as an important tool supporting the adoption of the Thailand 4.0 economic model and the country’s 20-year strategic plan, he added.
The bank contributes 1% of the country’s gross national income but wants to see this reach 2.5% by 2027.
Exim Thailand last week rolled out a low-interest-rate product to entice SMEs to capitalise on improving exports in the second half.
It caps revolving credit at 2 million baht and charges borrowers 5% for the first year, minus 1 percentage point for the second year and a flexible rate for year three.