EXIM Bank Pushes Forward with 700 Billion Baht Lending Target, Says Thai Businesses Must Overcome Three Major Challenges

EXIM Bank's Managing Director Chalach Rattanabunnidi announced that the bank has set a target to disburse 700 billion baht in new credit during 2025, with 1.8-1.9 billion baht already distributed in the first four months (January-April)—representing 100 percent growth compared to the same period last year. The bank also aims to attract more than 3,000 new credit and insurance customers to complement its existing customer base of 6,000. Currently, EXIM Bank maintains outstanding credit of approximately 1.8 trillion baht, up 2 percent year-over-year, with non-performing loans at around 4 percent of total outstanding credit.

Rattanabunnidi noted that Thai exporters—EXIM Bank's primary clients—still rely heavily on traditional markets such as China, the United States, and the European Union, but increasing regulations have encouraged exploration of new frontiers. However, progress has been hampered by instability in the Middle East. EXIM Bank projects Thai exports will expand by approximately 7 percent this year and GDP by 2 percent, driven by strong foreign demand for electronics linked to AI trends, food security concerns, continued investment momentum, and the government's 400 billion baht stimulus loan decree.

Looking ahead to quarters two through four, the bank is monitoring potential challenges including potential impacts from U.S. presidential visits to China for trade negotiations, de-dollarization efforts, and U.S. mid-term elections. Rattanabunnidi emphasized that Thai exporters face three major challenges: (1) High costs stemming from raw materials, logistics, labor, financial expenses, and increased risk management costs; (2) High compliance burdens from international standards, environmental regulations, data protection laws, and stricter accounting standards; and (3) Intense competition from low-cost Chinese products, rapidly changing technology, and shifting consumer behavior.

Thai businesses must quickly adapt to complex uncertainties including severe conflicts and prolonged wars affecting energy and food security, potential U.S. trade barriers reaching up to 15 percent, commodity and global financial market volatility, currency fluctuations, and extreme weather impacts. EXIM Bank pledges to support clients through the government's 5T policy framework: Target (providing SME relief), Transition (promoting green loans), Transform (diversifying markets), Transparency (ensuring global standard compliance), and Together (fostering collaboration).