09 June 2004 02:31
Exim Bank urges exporters to look at markets in Russia
ByLine: Darana Chudasri
The Export-Import Bank believes the Russian market offers strong trade opportunities for Thai companies, given
Russia's booming economy driven by higher global oil prices.
The Exim Bank recently signed an agreement to provide $20 million in revolving trade financing facilities through
Vneshtorgbank, a Russian bank. The facility is open to trade deals worth at least $50,000.
To support smaller trade transactions, Exim will also provide facilities to negotiate and confirm letters of credit
of up to 90 days and issued by two state and seven private banks: Vneshtorgbank, Vnesheconombank, Alfa-Bank, Bank Zenit,
Globex Commercial Bank, International Moscow Bank, Open Joint-Stock Commercial Bank Avtobank-Nikoil, Promsvyazbank, and,
Gazprombank.
Sataporn Jinachitra, the Exim Bank president, noted that Russia, with the world's second largest oil reserves,
had posted economic growth of 6% to 7% last year.
"Russia is a large country with ... rising purchasing power and plentiful natural resources. Economic growth is
projected at about 6% this year," he said.
Two-way trade between Thailand and Russia, which has a population of 145 million, currently totals around $300
million to $400 million per year, although the government hopes to see this increase to $1 billion within the next
several years.
Around 80% of Exim Bank transactions are with the country's five major trading partners: the US, Japan, China,
Europe and Asia.
But Mr Sataporn said the country planned to extend its relationships with institutions in China, India, Brazil and
the Middle East to support government efforts to encourage local exporters to expand to new markets.
The state bank also is looking to boost its retail base by 450 to 2,000 by the end of the year through new services
such as Packing Credit Plus, a facility combining pre-shipment financing and export credit insurance services.
Mr Sataporn said around 88% of the bank's customers were retail, accounting for an estimated 44% of outstanding
loans.
"Our target this year is to increase our retail customers. We will develop more products for this group,"
he said.
[Bangkok Post] |
RUSSIA IN FACTS
