Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bangkok Post
Bangkok Post
Business

Exim Bank eyes green loans

Export-Import (Exim) Bank of Thailand plans to expand its green loans to 50% of its total outstanding loan book within four years, in line with global environmental goals, says president Rak Vorrakitpokatorn.

Mr Rak said the bank's outstanding green loans comprise 37%, or 59.6 billion baht, of total outstanding loans valued at 161 billion baht.

He said Thai exporters need to quickly adjust their production processes to be more environmentally friendly as global green development trends favour products that have the least impact on the environment.

Next year, India plans to finance green projects that use bioplastic packaging that is biodegradable.

"If Thai entrepreneurs do not adjust their packaging, some shipped goods may be returned if they fail to meet the standards of that country," Mr Rak said.

He said adaptation to the environmental, social and governance (ESG) framework would be beneficial for entrepreneurs as the bank's policy supports low-interest loans for companies wishing to go green, with an interest rate of 4%, which is the lowest in the Thai financial system.

In addition, Exim Bank is cooperating with the Industry and Commerce ministries to jointly develop entrepreneurs' competitive capabilities on the global front.

According to its "go green" strategy, the bank aims to reduce carbon emissions by 10% each year, said Mr Rak.

Exim Bank's operations emit 1,800 tonnes of carbon per year, and it plans to buy carbon credits, he said.

The bank also joined a committee in the Federation of Thai Industries to establish Thailand's carbon trade exchange platform, which aims to support Thai businesses in achieving a net-zero target.

Compared with 5.5% growth last year, Mr Rak said the bank expects export growth of 1-2% this year, although some research centres forecast a contraction because of slowing growth in the US and Europe.

Export products that are likely to see positive results this year include fruit, particularly durian, as well as customised product groups that meet global market needs such as functional food and ESG products, he said.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.