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US-backed Credit Plan for Small Thai Businesses Starts Slowly.
Byline: Srisamorn Phoosuphanusorn
Nov. 3--The US Export-Import Bank's credit programme for Thai small businesses is off to a slow start because of limited marketing, officials say.
Since the programme was announced in January, no loans have been approved by the two participating American commercial banks, AmTrade International Bank and Compass Bank.
Credit is available to local small businesses seeking to buy equipment and materials from the United States, with no collateral and no ceiling on credit lines.
The US Exim Bank will guarantee 90 percent of the loans extended by AmTrade and Compass, which means the banks will bear only 10 percent of the risks.
The two banks plan to set up local representative offices next year to stimulate more lending.
"The main reason for the slow response was a lack of loan information and public relations," said Michael Dwiggins, senior vice-president of Compass Bank.
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