EXIM Thailand has so far maintained its lending interest rate as a traditional Thai New Year gift for Thai entrepreneurs, particularly SMEs, and set to raise its prime rate for general customers and SMEs, which is the rate equivalent to minimum retail rates (MRR) of commercial banks from 6.00% per annum to 6.25% per annum, still the lowest MRR in the system, effective from April 17, 2023.
Dr. Rak Vorrakitpokatorn, President of Export-Import Bank of Thailand (EXIM Thailand), revealed that, as a state-owned specialized financial institution with a mission to drive the country's international trade and investment strategies, EXIM Thailand is has been steadfast in its commitment to take "One Step Ahead for All Development." Therefore, the Bank will maintain its Prime Rate (the lending interest rate applicable to customers in general and SMEs, being equivalent to the minimum retail rates (MRR) of commercial banks) at 6.00% per annum as a traditional Thai New Year gift marking the Songkran Festival for Thai entrepreneurs despite the gradual interest rate hikes by financial institutions following the latest policy rate increase from 1.50% per annum to 1.75% per annum by the resolution of the Monetary Policy Committee on March 29, 2023. This aims to give Thai entrepreneurs including SMEs more time to adjust and manage their costs in the face of inflationary pressure and rising interest trends.
However, to ensure EXIM Thailand's business operation reflects and aligns with the current economic and inflation circumstances and to support the Bank of Thailand's monetary policy implementation for Thai economic revival and stabilization, EXIM Thailand has announced its prime rate increase by 0.25% per annum from 6.00% per annum to 6.25% per annum, which is still the lowest MRR in the industry, taking effect from April 17, 2023.
In addition, to ease the loan interest burden of entrepreneurs, SMEs in particular, as well as retail entrepreneurs who are little people in the business world, EXIM Thailand has consistently rolled out relief schemes and special promotion packages in conjunction with devising the "3 Fills" tool : Fill knowledge gap, Fill opportunity gap and Fill capital gap in support for these entrepreneurs so that they would be able to adapt, survive and access opportunities and financial sources for their business start-up or expansion in linkage with export supply chains, as well as to grow firmly and sustainably in global trade of the new era amid emerging economic challenges and uncertainties globally.
"EXIM Thailand has a policy in place to perform as a lead bank in supporting Thai entrepreneurs' solid adaptation and growth in international trade arena. We have thus had our prime rate hike delayed for another 2 weeks going into the traditional Thai New Year Festival, hence allowing for entrepreneurs to manage their costs and deal with the current economic direction and upward trends of interest rates. Customers and entrepreneurs may seek our advice or special promotion offers to facilitate their export-related business start-up or expansion which would subsequently enable Thai businesses to grow healthily and sustainably on the global front," added Dr. Rak.