Ministry of Finance supports EXIM Thailand’s strategy to promote its export credit insurance service and encourages Thai exporters to buy an insurance policy to cover every shipment. The total turnover of short-term export credit insurance for the year 2010 is targeted at 100,000 million baht, increasing by 69% from 59,200 million baht in 2009.
According to Dr. Pruttichai Damrongrat, Deputy Finance Minister, quoting a forecast by a leading international credit insurance agency, the number of business insolvencies worldwide is expected to soar in 2010. Business insolvencies in the United States, for instance, were forecasted to increase to 60,700 cases, up from 43,546 in 2008. The figure in the United Kingdom will reach 37,500 (from 29,994 in 2008). Meanwhile, insolvencies in France are expected to rise to 68,600 (from 57,665 in 2008).
Consequently, Thai exporters should obtain export credit coverage for their foreign receivables. EXIM Thailand is a state-owned specialized financial institution providing an export credit insurance (EXIMSurance) service to Thai exporters. Under this facility, EXIM Thailand helps examine buyers’ credit information. In case of payment default, the Bank will pay compensation and provide assistance with debt collection. Hence, this service helps boost confidence among Thai entrepreneurs in starting or expanding export businesses in traditional or new markets.
“EXIMSurance not only enables exporters to offer more competitive payment terms to overseas buyers, but can also be used as collateral for loans from financial institutions,” said Dr. Pruttichai.
EXIMSurance service is divided into three types : 1) EXIM SURE which is suitable for exporters wishing EXIM Thailand to help mitigate risks of each export shipment closely 2) EXIM FLEXI which was launched in 2008 to offer discounted premium rates while reducing document preparation hurdles. Eligible policy holders can receive claim payment up to 90% of loss realized and 3) EXIM 4 SMEs, launched in 2009, is an export credit insurance product for SMEs with annual export value up to 100 million baht. The service offers a premium rate 35% lower than the normal export credit insurance policy and a convenient one-week application approval period.
Saturday, January 30, 2010
Sunday, January 17, 2010
Article Looks At The Long-Term Effects Of The Recent Credit Crisis
In the wake of the 2007-2008 financial crisis, there has been much discussion about the prospects for an economic recovery over the next few quarters. But an article published yesterday by Standard & Poor's says that the more important issue is: What will happen over the next few decades? The article, which is titled "The New Normal (The Future Isn't What It Used To Be)," says that Standard & Poor's believes it will be a decade or more before the world and U.S. economies can hope to grow as rapidly as they did during the half-century or so preceding the recent crisis because they will have to bear increasing burdens. These will likely include:
--High personal debt and lower wealth in the U.S., which--combined with a rebounding though still-low saving rate--will slow the consumer spending that has powered much of U.S. and world growth.
--International trade and financial imbalances that are leading to a weaker dollar and a move away from dollar reserves.
--Stricter but inconsistent financial and other government regulation.
--A global financial system that has lost much of its capital and will need to operate with lower leverage, restricting loan availability.
--More risk-averse investors (some suddenly conservative because of recent losses, others approaching retirement and husbanding their wealth).
--Fiscal deficits in many countries, especially the U.S., the deficit of which could grow larger as the retirement wave hits.
--Rising health care costs that threaten the competitiveness of U.S. companies versus their overseas counterparts.
"We expect that the world economy will recover," said Standard & Poor's Chief Economist David Wyss. "But we think it's likely that it will look different once it does." For example, the events of the past two years likely have accelerated the relative decline in U.S. economic influence, as Asian economies have continued to grow while America's has contracted. In past decades, however, the U.S. and world economies have proved resilient. So while the future isn't as bright it seemed during the bygone boom, neither is it as bleak as it seemed only a year ago.
This article is part of a special report titled "The New Normal," which also will be published in the Jan. 27, 2010, edition of Standard & Poor's CreditWeek. The special report examines how certain industry sectors and financial markets could fundamentally change as a result of the recent credit crisis.
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
--High personal debt and lower wealth in the U.S., which--combined with a rebounding though still-low saving rate--will slow the consumer spending that has powered much of U.S. and world growth.
--International trade and financial imbalances that are leading to a weaker dollar and a move away from dollar reserves.
--Stricter but inconsistent financial and other government regulation.
--A global financial system that has lost much of its capital and will need to operate with lower leverage, restricting loan availability.
--More risk-averse investors (some suddenly conservative because of recent losses, others approaching retirement and husbanding their wealth).
--Fiscal deficits in many countries, especially the U.S., the deficit of which could grow larger as the retirement wave hits.
--Rising health care costs that threaten the competitiveness of U.S. companies versus their overseas counterparts.
"We expect that the world economy will recover," said Standard & Poor's Chief Economist David Wyss. "But we think it's likely that it will look different once it does." For example, the events of the past two years likely have accelerated the relative decline in U.S. economic influence, as Asian economies have continued to grow while America's has contracted. In past decades, however, the U.S. and world economies have proved resilient. So while the future isn't as bright it seemed during the bygone boom, neither is it as bleak as it seemed only a year ago.
This article is part of a special report titled "The New Normal," which also will be published in the Jan. 27, 2010, edition of Standard & Poor's CreditWeek. The special report examines how certain industry sectors and financial markets could fundamentally change as a result of the recent credit crisis.
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
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