State-owned Export-Import Bank of Thailand extended new loans worth 25 billion baht in the first seven months of 2018, adding to signs that its full-year loan growth target of 30 billion baht is within reach, Exim's chief says.
If the 2018 loan target is achieved, the bank's outstanding loans will increase by 10%, or 9 billion baht, to reach 100 billion baht, said Exim president Pisit Serewiwattana.
The bank's total loans rose 8% in 2017.
According to Exim Thailand's loan portfolio breakdown, 65% are investment loans and the remaining 35% are loans intended for working capital.
Mr Pisit said recently that Thailand's merchandise shipment growth would reach the upper end of the forecast range of 7-9% this year, driven by robust global economic growth, high commodity prices and relocation of manufacturers' production bases to Thailand.
The value of Thailand's outbound shipments is expected to reach US$127-$132 billion (4.23-4.39 trillion baht) in the second half of 2018, up from $126 billion recorded in the first half -- bringing the expected total export value to $253-$258 billion.
Mr Pisit said he thinks the domestic interest rate could be either left steady or fractionally raised, given subdued inflation in 2018 -- with a 25-basis-point increase expected if the government decides to increase the rate.
Exim Thailand recently launched Exim for M Credit, a revolving credit facility for both pre- and post-exports, and Exim Nego for M Credit, a revolving credit facility for post-exports that is aimed at mid-sized operators.
Both products feature a low collateral requirement, set at 35% of loan value plus personal guarantee for Exim for M Credit and 30% plus personal guarantee for Exim Nego for M Credit.
Although medium-scale operators represent a mere 0.5% of the 3 million operators in Thailand, they have an important role in driving the economy, Mr Pisit said.
