Export-Import Bank of Thailand (Exim Bank) aims to expand the proportion of loans it extends to businesses conforming to the bio, circular and green economy (BCG) model to 50% of its anticipated total outstanding loans in the next three years from the current level of 28%.
President Rak Vorrakitpokatorn said the bank's "green" outstanding loans stood at 47.6 billion baht last year out of total outstanding loans of 168 billion baht.
The bank will also issue green bonds this year to raise funds to provide to small and medium-sized enterprises (SMEs) to upgrade their production to be more environmentally friendly, Mr Rak said.
For BCG loans, the bank will focus on promoting renewable energy and for packaging future food and functional food.
The bank has extended a total of 62 billion baht to 320 renewable energy projects worth 380 billion baht in the past. The loan extension helps reduce carbon dioxide emission of 100 million tonnes.
Mr Rak said the bank expects export growth of 2% this year, although some research centres forecast zero growth of the sector due to slowing growth of the US and European economies.
The 2% growth is based on the assumption that exporters can penetrate more into the new high growth markets such as Middle East, South Asia and Asean nations.
Exim Bank is expected to raise its loan rate again in the middle of this year following the loan rate hike by 0.25% tomorrow, in line with last week's policy rate hike by the Bank of Thailand to the current 1.50%.
For its 2023 financial targets, the bank eyes total outstanding loans of 180 billion baht, up 10% year-on-year, and with non-performing loans contained at not over 3%, compared to 2.9% last year.
The bank targets net profit of at least 1.5 billion baht, compared to around 1.5 billion baht last year.
