Mr. Pramon Neramitmansook pramonn@exim.go.th Senior Manager Export Credit Insurance Department

1. The Mekong InstituteEnhancing Entrepreneurship in SME Development and Export ConsortiaRole of EXIM Bank’s Financial Service for SME Development in Thailand Mr. Pramon Neramitmansook pramonn@exim.go.th Senior Manager Export Credit Insurance Department Export Import Bank of Thailand

2. DiscussionTopic • About Export-Import Bank of Thailand • Roles of Thai EXIM and Thai’s Economy • Present and the future • Experience Sharing/ Q&A

3. About Export-Import Bank of Thailand

4. 1961 12 April Yuri Gagarin 1st cosmonauts 20 January John F. Kennedy 35th US President 13 August Berlin Wall 1st Thai’s National Development Plan (1961-1966) 4 August Barack Obama 44th US President

10. 1992 • 7th Thai’s National Development Plan 1992-1996 • Establishment Special Financial Institution to support Thai’s Export and Import business.

11. EXIM Thailand was establish under the Export - Import Bank of Thailand Act in 1993 The initial capital of 2.5 billion bath and started up its business In 1994 EXIM Thailand increased its capital twice in April and July 1998 with 2.5 billion bath and 1.5 billion bath respectively About us

12. 1934: US EXIM 2001: Pres. George W. Bush 1993: Pres. Bill Clinton 2003:Iraqi Freedom Op. 2005: Katrina 1997: Econ. Crisis 2004: Tsunami 2007: EXIM Inter 2003: IMF Pay off 1994: Thai EXIM 1995: Export Credit Insurance 2004: Intl Project&Investment 1993: ~40,000 MUSD Export Value 2000: ~70,000 MUSD Export value 2007: ~152,000 MUSD Export value

13. Roles of Thai EXIM and Thai’s Economy • Thai EXIM and roles of Thai’s economic development • In 1997 Thailand encountered economic crisis most of commercial banks ceased their lending. • As of government body, EXIM Thailand responded to this challenge by accelerating credit extension to carter for exporters’ rapidly rising demand for credit.

14. Thailand’s Export Volume 1993 37,324.8 million USD 1994 45,430.0 million USD 1996 55,941.4 million USD 1997 58,389.4 million USD 1998 54,490.1 million USD 1999 58,463.4 million USD 2000 69,624.2 million USD 2003 80,040.0 million USD 2007 152,095.2 million USD 2008 70,944.5 million USD 2009 xxxxxxxxxxxxxxxxxxx (As of year end / Source : Ministry of commerce)

15. 2003 1993

17. Financing services Working Capital Loans Pre-shipment Financing (Baht, USD, Yen) Export Supplier's Finance Term Loans Term Loan for Business Expansion Long-term Credit for Export of Capital Goods Merchant Marine Financing Financing for Overseas Projects Financing Facilities for Overseas Construction Contracts   Financing Facilities for Overseas Investment Financing Facilities for Thai Restaurants Overseas What we do

18. Support Exporting

20. Working Capital Loans Pre-shipment Financing (Baht, US Dollar, and Yen) • A revolving line of credit provided in baht, US dollar, or yen, directly to exporters of all kinds of products to meet their pre-shipment financial needs. (The yen-denominated facility is available to exporters possessing letter of credit (L/C), contract, or purchase order (P/O) in yen only.) The US dollar- and yen-denominated financing is aimed to lessen financial costs of exporters and to reduce foreign exchange risks since exporters can use US dollar or yen proceeds to pay back the credit.

21. Term Loans Term Loan for Business Expansion • A medium- to long-term credit facility to support the expansion of exporters' production capacity, such as factory expansion, purchase of additional machinery, investment in other fixed assets or new domestic manufacturing plants. Businesses eligible for support are export-oriented manufacturing, those earning foreign currencies, or import substitution enterprises, both new or existing establishments

24. Venture Capital • Investment : on equity /capital typically provided to early-stage, potential, growth export or Thai’s overseas companies in the interest of generating a return. • Through “Thai EXIM International Co.,Ltd.” • EXIM International ,Thailand Head office Bangkok. • EXIM International, Moscow

25. Support Overseas Investment

26. Financing for Overseas Projects A long-term credit to support Thai investors’ overseas investment projects.

27. Hotel De La Paix, Cambodia

30. Laos: Nam NugmHydropower plant

31. Myanmar: Mandalay Intl Airport

33. What we do Non-Financing services • Export Credit Insurance D/P, D/A and O/A Policy • Export Credit Insurance L/C Policy • Medium- and Long-term Export Credit Insurance • Investment Insurance  • Buyer/Bank Risk Assessment Service (BRA)

34. What is Export Credit Insurance ? Account Receivables insurance

35. Why! Trade Credit

38. ADVANCE PAYMENT LETTER OF CREDIT D/P SIGHT D/A OPEN ACCOUNT IMPORTER EXPORTER Less risk +++Risk +++Risk Less risk

39. Export Credit Insurance • Credit Manager (Underwrite buyers/banks credit line for policy holder) • Loss Minimize (Indemnify policy holder for their loss) • Risk Sharing (Take the larger portion, up to 90%, of all bad debts collecting costs) • Legal Consultant (Advise policy holder the appropriate legal actions) • Export Adviser (Monitor international trade situation)

40. Export Credit Insurance Commercial Risks • Buyer is insolvent/bankrupt • Buyer refuses to pay • Buyer refuses to take delivery Political Risks • Remittance of hard currency restricted or prohibited by authorities • New regulation prohibiting importation • Occurrence of war, revolution or riot that obstructs payment

41. Buyer’s Credit Check

42. Recommend buyer’s credit terms

43. Indemnity for covered loss

44. Debt Collecting networks

45. CI Commercial Intelligence Consultants Ltd. องค์กรติดตามหนี้

46. Investment Insurance • Insurance coverage against political risk of losses relating to overseas investment i.e. losses from imposition of laws or any action taken by host government that adversely affects project investment or the investor’s repayment ability.

47. 1993 Russia Rebellion : Thousands of Muscovites protest against Russia's government as hard-line opponents of President Boris Yeltsin occupy the parliament building.

48. 2003 GULF WAR episode 2

49. Investment Insurance • Equity Insurance covering losses on assets, profits or other monetary benefits derived from the insured investment.

50. Investment Insurance • Loan Insurance covering the original principal and interest amount according to the repayment schedule under a loan agreement.