Exim to give B5bn boost to S-curve expansion
The state-owned Export-Import Bank of Thailand (Exim Thailand) has earmarked a 5-billion-baht loan for investment in infrastructure projects and development of advanced production technology, innovation and S-curve industries.
The introduction of Exim Special Zone Credit is aimed at supporting the transition of the Thai export structure to higher value-added products, said president Pisit Serewiwattana.
Target customers are entrepreneurs who plan to invest in the Eastern Economic Corridor (EEC), which spans Chachoengsao, Chon Buri and Rayong provinces, and those who aim to begin startups or expand or transform their business in special economic zones, border provinces, industrial estates, industrial parks and either public or private sector industrial zones.
EXIM Special Zone Credit is a long-term credit facility for business investment or expansion, with a special rate of 1.75 percentage points below the prime rate (equal to 4.50% per year) for the first three years. If borrowers are located in the EEC, the rate is two percentage points below the prime rate (equal to 4.25%) for the first three years. Interest rates for the remaining loan term are the same for those with locations in EEC or non-EEC areas — 1.75 percentage points below the prime rate for the fourth to the eighth years and one percentage point below the prime rate from the ninth to 15th year.
Moreover, borrowers are eligible to seek additional credit as working capital with up to 1.5 times the 15-year loan. Interest rates are in a range of 4-4.47% for operators outside of the EEC and 4-4.5% for those located in the EEC.
The EEC is home to 29 industrial estates with total investment value of more than US$50.5 billion (1.58 trillion baht). The areas boasts a production base of more than 3,700 factories and a centre for automobiles, parts and petrochemical manufacturing, where entrepreneurs are eligible for several benefits, such as tax breaks and other investment incentives.
In the meantime, Exim Thailand is collaborating with the Industry Ministry, the Small and Medium Enterprise Development Bank of Thailand, the Office of Small
and Medium Enterprise Promotion and Government Savings Bank to launch “Soft Loan for Machinery Modification Phase 2” under the Transformation Loan project.
The soft loan programme is aimed at financing SMEs’ business expansion or modifications and their long-term working capital requirements to enhance liquidity in business operations.
Target SMEs are those in the 10 S-curve industries and related industries. Maximum credit line per customer is 15 million baht and the interest rate is 4% for a maximum loan tenor of seven years, including a grace period of up to one year.
Between 400-500 of Exim Thailand’s customers are being targeted for the loan scheme, he said.