By The Nation
The Cabinet today approved the financial measure to promote the Thai construction industry’s overseas investment, with the Bt1 billion budget to reduce costs related to bank guarantees.
Watchara Kannikar, deputy government spokesman, said the Export and Import Bank of Thailand is assigned to work with the Budget Bureau for the implementation.
“(In submitting a bid document), Thai companies now can’t directly obtain bank guarantees from foreign banks, required as a project guarantee amount. They have to get the guarantees from Thai banks, before obtaining foreign banks’ counter guarantee. This increases their financial cost. The measure will reduce the cost charged by the foreign banks and reduce their operating cost,” Watchara said.
Under the measure, the government’s assistance would not exceed 2 per cent of the project guarantee amount, or Bt50 million per project. The Cabinet reasoned that this measure would increase Thai companies’ competitiveness overseas.
