EXIM Thailand Unveils Green Credit to Urge Thai
Entrepreneurs including SME to Build Green Businesses for Higher Competitive Edge and Sustainable Export Growth
EXIM Thailand has launched a new product “EXIM Green Start Credit” to bring advantage to ecofriendly businesses with a maximum credit line of 200 million baht, initial interest rate of only 4% per annum and a loan period of 3 years, and relaxed criteria of EXIM Export Ready Credit scheme by increasing the credit line to 20 million baht per entrepreneur and offering a discount on the interest rate for environmentally sustainable businesses to encourage Thai entrepreneurs including SMEs to uplift their businesses to meet such environmental standard as Thailand Taxonomy in order to participate in relieving global environmental problems and impacts on export and society, and driving competitiveness of Thai trade on a sustainable basis.
Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that, with the intensifying global warming and hence worsening climate change, the world has increasingly been threatened by the “3 Hs”: High temperature, High disasters and High damage. Thailand is no exception with a likelihood of higher severity and frequency of natural disasters and devastation. The natural disasters erupting for the past decade has wreaked havoc around the world to the extent worth around 2.5 trillion US dollars or roughly 5 times the value of Thailand’s GDP. EXIM Thailand has thus developed “EXIM Green Start Credit,” a new product for businesses caring for minimizing impacts on the environment, offering a maximum revolving credit line of 200 million baht per entrepreneur, a loan tenor of up to 3 years, an initial interest rate of prime rate -2.25% per annum or approximately 4% per annum which is lower than that applicable to businesses in general, and Free! foreign exchange forward contract worth onefold of the approved credit line to close foreign exchange risk for Thai exporters.
Moreover, EXIM Thailand has rationalized its “EXIM Export Ready Credit” scheme which aims to fill capital for export activities by leveling up the maximum credit line from 5 million baht per entrepreneur to 20 million baht per entrepreneur with an initial interest rate of prime rate -2.00% per annum or 4.25% per annum, and giving a discount of 0.25% on the interest rate in the first year as a special privilege for entrepreneurs with environmental operation. EXIM Thailand is the first financial institution pioneering in applying environmental objectives of the draft Thailand Taxonomy standard composed of a set of criteria defining activities that are considered ecofriendly to its credit underwriting process in line with such national standard to be enforced this year.
Operators of export-related businesses may apply for EXIM Green Start Credit and EXIM Export Ready Credit from today until April 30, 2024 and enquire with EXIM Contact Center at Tel. 0 2169 9999 for further information.
Dr. Rak further said that both products aim to boost liquidity for Thai businesses including SMEs so that they would be fully equipped to develop their product production processes and services to drive Thailand toward sustainable future and enhancing Bio-Circular-Green (BCG) economy in response to the government policy and socially and environmentally responsible business operation. This will contribute to Thai entrepreneurs’ stronger competitiveness in international trade markets without being exposed to the current rigid international trade measures relating to environmental compliance, such as the EU’s Carbon Border Adjustment Mechanism (CBAM) due to enter the transition period in 2023.
In addition, EXIM Thailand has implemented a diverse range of credit schemes to fulfill Thai business needs and uplift Thai businesses toward international environmental standards. They include Solar Orchestra scheme which finances installation of solar rooftop system in linkage with carbon market ecosystem, EXIM Kill Bill by Biz Transformation which aims for energy saving by financing replacement of chillers and use of energy saving equipment, and so on.
“Thai economy still has to rely mainly on export in a high proportion and as a key economic engine. If we can quickly respond to demand of our principal markets and develop our businesses sustainably, Thai economy will fundamentally grow stronger and healthier conducive to and alongside social and environmental development. Therefore, EXIM Thailand stands firm to support Thai businesses of all sizes in advancing toward the BCG model, creating a low carbon society in line with the government policy and the global community goal of inclusive economic development in the BCG model, optimization of natural resources, creation of value added to natural resources, and balancing of economic, social and environmental growth. EXIM Thailand will strive to fill knowledge gap, opportunity gap and capital gap for Thai businesses, and enhance linkage of businesses of Thai people at all levels with the export supply chains,” added Dr. Rak.
