Ministry of Finance Supports Expansion of EXIMSurance’s Target to 100,000 Million Baht by 2010

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.