The Export-Import Bank of Thailand (Exim Bank) plans to open representative offices in Cambodia, Laos, Myanmar and Vietnam (CLMV) this year and next to serve loan demand from Thai investors there.
The shift towards lending more for outbound investment comes as slowing global trade has pushed neighbouring countries to focus on domestic consumption to shore up economic growth, said president Pisit Serewiwattana.
Pisit: Confident loan target will be met
The state-run bank is set to open its first overseas representative office in Myanmar this year, while offices in Laos, Cambodia and Vietnam will be rolled out next year.
He is confident that the bank's 18-billion-baht new loan target this year is reachable after it managed to lend 16 billion for the eight months to August.
Its outstanding loans totalled 75 billion baht at the end of August.
Exim Bank aims to lower its non-performing loan (NPL) ratio to 5% by the end of this year, down from 5.1% at present.
Meanwhile, Exim Bank has launched a new export financing product with a seven-day approval process on condition of a personal guarantee.
The revolving loan, called Exim Instant Credit, offers pre to post-shipment refinancing, carries an interest rate of 3.5% per annum and provides for a credit line of up to 500,000 baht.
The new lending product has been launched to correspond with the high season for exports, normally in the fourth quarter, Mr Pisit said, adding that it will help improve exporters and importers' financial liquidity during the pre to post-shipment process.
Exim Instant Credit is also intended to serve the government's policy of assisting 2 million small and medium-sized enterprises (SMEs) nationwide, said Mr Pisit.
At present, there are 24,000 SME operators engaged in exports.
While Thailand's shipments are on a path towards recovery, exporters still face a spate of both internal and external risks, including a financial liquidity shortage, volatility on foreign exchange markets and low commodity prices.
Recently, Exim Bank unveiled a new export insurance product to offer cheap premiums to SMEs that want to expand.
The bank charges a 3,000 baht premium, well below that for regular export insurance products, for up to 500,000 baht in coverage per buyer.