Logo of Phnom Penh Post newspaper Phnom Penh Post - Exim Thailand posts $44M loss in first half

Exim Thailand posts $44M loss in first half

Content image - Phnom Penh Post
Exim Thailand president Phisit Sareewiwatthana. The Nation (Thailand)

Exim Thailand posts $44M loss in first half

The Export-Import Bank of Thailand (Exim Thailand) has reported a loss of 1.4 billion baht ($44.3 million) in the first half of this year after setting aside 5.4 billion baht as reserve for doubtful debts.

Exim Thailand president Phisit Sareewiwatthana said: “If the reserve were to be excluded, the bank would have recorded a profit of 1.1 billion baht in the first half of 2020.”

It is possible that the bank would increase the reserve in the second half of the year, depending on the export situation, he said.

“We estimate that by the fourth quarter, the situation would improve with around 70-80 per cent of customers being able to continue their businesses,” he said. “We also estimate annual operation revenue to contract, which is expected in the current economic situation.”

Exim Thailand’s non-performing loans (NPLs) in the first half of this year rose to 6.37 per cent from 4.6 per cent at the end of last year, up by roughly 30 per cent.

Outstanding loans were 126 billion baht, up 18 per cent from the same period last year which had recorded at 107 billion baht.

“It is notable that the export insurance rate has jumped 70 per cent, from 37 billion baht in the same period last year to 97 billion baht,” added Phisit. “The reason is, exporters are uncertain about importers’ paying ability so they are opting to get an insurance.”

He said the bank has provided three packages to its customers, especially those rejected by commercial banks.

First was an export insurance package for small and medium-sized enterprises (SMEs) that have annual income less than 100 million baht or fewer than 50 employees, starting at only 100,000 baht with maximum coverage of two million baht.

Second was a loan package for medium-sized entrepreneurs at maximum 80 million baht per customer and interest rate of 3.75 per cent annually.

Third was the Thai Keng Exim package, which aims to support rotating fund at three million baht per customer for entrepreneurs in competitive industries such as industrial agriculture, biotechnology, food processing and cosmetics.

The loan will have a fixed interest rate of 4.75 per cent annually, and will be reduced to four per cent in case the entrepreneurs export to Cambodia, Laos, Myanmar or Vietnam.

THE NATION (THAILAND)/ASIA NEWS NETWORK

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • PM dispels lockdown rumours, gifts masks

    Prime Minister Hun Sen on November 12 denied rumours that he will lock down the country in response to increased Covid-19 fears, referring to them as propaganda aimed at destabilising the country. In a Facebook post, he said some people had spread rumours that the government

  • SilkAir adds flight to Phnom Penh schedule

    Silkair (Singapore) Pte Ltd is increasing its flight frequency between Phnom Penh and Singapore with a third weekly flight on Saturdays, according to Cambodia Airports’ Facebook page. The other flights offered are on Tuesdays and Sundays, with an estimated Phnom Penh arrival time at 5:35pm