Annual Report 2008

Export-Import Bank of Thailand

EXIM Thailand supports more than exports…for economic development.

Annual Report 2008 | Export-Import Bank of Thailand

Export-Import Bank of Thailand

EXIM Building, 1193 Phaholyothin Road, Phayathai, Bangkok 10400Tel : 0 2271 3700, 0 2278 0047, 0 2617 2111 Fax : 0 2271 3204 www.exim.go.th

32

Vision, Mission, Role and Duty

Vision To be a prominent trade and investment financial institution in the Greater Mekong Subregion for economic development. Mission • To support and promote Thai exporters and investors for national development purpose. • To foster collaboration among financial institutions and countries in the Greater Mekong Subregion to promote and support trade and investment. Role and Duty • Export-Import Bank of Thailand (EXIM Thailand) is a state-owned financial institution under the Ministry of Finance’s supervision. The Bank was established by the Export-Import Bank of Thailand Act, 1993 (B.E. 2536), which became effective on September 7, 1993 and officially commenced operations in February 1994. • Under the Export-Import Bank of Thailand Act, 1993 (B.E. 2536), the Bank’s objective is to conduct business which promotes and supports Thai export,

import, and investment, both domestic and overseas, for the purpose of national development by providing credit facilities, guarantees, risk insurance or other services under the provisions of this Act. • In November 1999, the Export-Import Bank of Thailand Act (No. 2), 1999 (B.E. 2542) was enacted to broaden the Bank’s object ives and scope of operations with regard to investment promotion and support. The amendment was aimed at enabling the Bank to expand financial support to Thai investments abroad and local businesses helping to increase Thailand’s foreign exchange earnings or savings. • The Bank is protected under the Export-Import Bank of Thailand Act, 1993 (B.E. 2536) against high-risk financial transactions. The Ministry of Finance is required to allocate funds from the government’s annual budget to compensate for loss incurred from business transactions implemented in conformity with the government’s direction or the cabinet’s resolution. Likewise, for loss arising from export credit insurance which may affect the Bank’s operations or lead to the Bank’s inability to maintain the required capital adequacy ratio, the Ministry of Finance is obligated to allocate funds from the annual budget or other sources to compensate for such loss or to increase the Bank’s capital.

• A n n u a l R e p o r t 2 0 0 8

Highlights of Operating Results

Operating results Net interest and dividend income 1,301 1,467 Non-interest income 647 673 Non-interest expenses 586 794 Profit before bad debts and doubtful accounts and loss on debt restructuring 1,362 1,346 Bad debts and doubtful accounts and loss on debt restructuring 1,161 840 Net profit (Net loss) 201 506 Financial position Total assets as of year-end 59,853 65,391 Outstanding as of year-end Loans 50,748 52,752 Working capital 27,741 29,319 Term loans and others 23,007 23,433 Short, medium and long-term export credit insurance 8,358 6,902 Credit commitment as of year-end Loans and guarantees 112,783 104,893 Working capital 74,733 70,829 Term loans 38,050 34,064 Short, medium and long-term export credit insurance liabilities 10,324 11,561 Business turnover during the year Export bills 120,695 117,524 Export bills insured 40,007 41,016 Financial ratios (%) Return on average assets 0.3 0.8 Return on average equity 2.3 6.7 Capital adequacy ratio (CAR) 19.1 14.2 Asset quality Non-performing loans (NPLs) 4,727 2,925 NPLs to total loans and accrued interest receivables (%) 9.2 5.5

Unit : Million Baht

Items

Value

2008 2007

Contents

Vision, Mission, Role and Duty

Highlights of Operating Results

Report of the Board of Directors

EXIM Thailand and the Role of Development Bank

Overview of Thai Exports in 2008 and Outlook for 2009

Significant Developments in 2008

Operating Results and Financial Position in 2008

Corporate Governance

Risk Management

Report of the Board of Directors’ Responsibility for Financial Reports

Report of the Audit Committee

Auditor’s Report

Financial Statements and Notes to Financial Statements

Board of Directors

Top Executives

Executive Officers

Organization Chart

Addresses

003

004

006

011

022

032

035

049

064

074

075

077

078

114

127

129

130

132

• A n n u a l R e p o r t 2 0 0 8

Report of the Board of Directors

In 2008, the Thai economy had been battered by the global downdraft and internal political uncertainties, thereby causing the business sector to encounter different facets of crisis through the year. In the first half of the year, oil prices and consumer prices mounted dramatically, pushing up production costs amid a bloating inflation rate. In the latter half, spillover effects from the world financial and economic meltdown further dragged the business sector into severe difficulties ignited by heavy drops in consumers’ buying power both at home and overseas. Consequently, the growth rate of the Thai economy fell sharply to 2.6% in 2008 from 4.8% in 2007. In such a challenging economic and financial climate, EXIM Thailand could yet perform satisfactorily in 2008, with a pre-provisioning profit advancing 1.2% year-on-year to 1,362 million baht. Nonetheless, the Thai and global economic downturn directly jeopardized Thai exports and investments abroad resulting in a growing number of our non-performing loans and, hence, a required provision for bad debts and doubtful accounts of 1,161 million baht. Our net profit for the year, therefore, plummeted from 2007 by 60.3% to 201 million baht. In 2008, EXIM Thailand continued actively to build a solid foundation towards the goal of becoming a “development bank,” by adopting a more ambitious role in “supporting more than exports…for economic development.” This is in tune with our vision to be “a prominent trade and investment financial institution in the Greater Mekong Subregion for economic development.” To such end, we have deepened our engagements in product development and expertise building with a view to sharpen Thailand’s competitive edges in the international trade arena. In 2008, EXIM Thailand extended new lending facilities such as Financing Facilities for Service Providers for Exports to support service expansion or improvement of logistics service providers such as merchant marine, shipbuilding, and freight forwarder. Credit and equity financing was granted to infrastructure and public utilities, energy and renewable energy projects, including ethanol production plants and crude palm oil factories. We also provided financial support for import of capital goods, machinery and technical know-how necessary for the development and efficiency enhancement of Thai export goods. In addition, we expanded our export credit insurance services delivered through other financial institutions, granted equity financing to capital-deficient, yet promising businesses, and rendered financial advisory services. Among our other development achievements were domestic and overseas network expansion to better facilitate and access target groups by, for instance, opening a joint sub-branch with the Government Savings Bank (GSB) in a One-branch, Two-bank campaign and setting up Thai EXIM International Co., Ltd. which opened its pioneer branch in Moscow, Russia in November 2008. For 2009, we will continue to pursue our role as a development bank, but with a stronger drive, in a bid to increase the speed and efficiency of our services and offer a broader and more comprehensive range of financial products. We will emphasize the expansion of export credit insurance services provided through other financial institutions in order to raise exporters’ awareness of the significance of risk management associated with international payments. We will also carry on from 2008 domestic network expansion by opening another 5-10 joint sub-branches at GSB for customer service facilitation. As for overseas networking, we plan to bolster exports to

76

Russia via Thai EXIM International Co., Ltd.’s Moscow branch and to redefine foreign branch models that fit Thailand’s promising trade partners like India and Indonesia. In addition, we have equipped our staff with essential information resources through database enhancement which made available comprehensive and in-depth information and analysis of target industries and countries. We will in 2009 carry on such development on a qualitative and quantitative basis in order to increase value-added to our information services. Likewise, we have upgraded our equity financing, financial advisory, mergers and acquisitions, and financial restructuring services to ensure our clients’ sustainable growth. In terms of corporate development in 2009, EXIM Thailand will emphasize capability enhancement in various areas of operations, notably information technology development to cater for our core banking activities, banking operation centralization and data center development, and business process streamlining to raise efficiency in both customer servicing and internal management, as well as gearing up for new businesses in the future. We will also focus on the staff’s knowledge and expertise enrichment programs to enhance their efficiency and readiness to create value-added to the organization and successfully implement our corporate strategies. These programs include competency-based human resources management, introduction of a bankwide training roadmap, and skill set building that enables back-office staff to perform marketing functions. Throughout the past 14 years, EXIM Thailand has earnestly addressed the export sector’s needs in various aspects, providing financial solutions to exporters at all levels, successfully introducing export credit insurance service to the Thai business communities while playing an important role in reinforcing exporters’ competitiveness. We also pioneered the promotion of Thai investments overseas allowing them to benefit from low-cost labor and abundant natural resources while enjoying export tax privileges, as well as gaining a strong foothold in neighboring countries. Today, EXIM Thailand has become the country’s leading financial institution specializing in the promotion and support of Thailand’s exports and overseas investments. The Board of Directors takes this opportunity to express our deep appreciation to Thai exporters, investors, government and private agencies, and our business partners for their continued support. As well, we would like to thank the Management of EXIM Thailand and every staff member for their dedication, perseverance and hard work that has rendered EXIM Thailand success and readiness to begin its fifteenth year of operation with integrity and stability. (Mr. Narongchai Akrasanee) Chairman

EXIM Thailand is ready to be a business partner,

To co-invest alongside Thai businesses,

To help them expand their productivity,

Create jobs and income, increase foreign exchange earnings and

Sharpen their competitive edge in the long term.

• A n n u a l R e p o r t 2 0 0 8 11

10

EXIM Thailand and the Role of

Development Bank

EXIM Thailand’s Role over 15 Years and a Move towards a Development Bank

Present Economic Structure and Outlook Since the eruption of the 1997 economic

crisis, the export sector has become increasingly vital to the country’s economic expansion, as evident from a surge in the export value to GDP from 38.0% in 1997 to over 60.0% in 2007. In particular, from 2003 onwards, which was a golden era of the Thai export sector, export value consistently enjoyed a two-digit growth rate and has thus been a key engine of Thai economic growth, though being threatened from time to time by a number of adverse phenomena, beginning with the SARS epidemic in 2003, followed by avian flu in early 2004, tsunami disaster in late 2004, and

Until 1993: Pre-inception period Between 1963 and 1993, Thai exports grew healthi ly from 13% to 29.7% of GDP and had played an increasingly crucial part in driving the Thai economy. Whi le exporters had to face keen competition in global markets and non-tariff trade barriers imposed by trading partners, there had been no specialized financial institutions in Thailand that provided financing particularly for the export sector. The only common service offered by banks in general was packing credit, which was a short-term low-

internal political chaos that has been protracted since 2006. Upon entering 2008 , the Thai economy remained continuously stricken by threats from the baht strengthening and the oil price hike that hit a record high of near ly 150 U.S. dol lars /barre l . Notwithstanding, Thai exports became even stronger and continued to be the main driver of Thai economic growth. The export value in the second quarter of the year soared by 26.3%, the highest in 13 years, and in July rocketed to an all-time high of 17,371 million

interest facility funneled by the Bank of Thailand through commercial banks to exporters, but in a limited amount that could not fully address the exporters’ financial needs. Exporters and investors still required many other types of financial services such as medium-term and long-term credits including services to support overseas investments and, in particular, export credit insurance service that none had yet provided.

• A n n u a l R e p o r t 2 0 0 8 13

12

U.S. dollars. Then, the collapse of Lehman Brothers Holdings Inc., the U.S.’s fourth biggest investment bank, thereby ending its century-long role as a world leading financial institution on September 15, 2008, spiraled into financial crises in several countries and then induced a worldwide panic and eventually a full-blown, global economic crisis, which is the worst in decades. The economic superpowers like the U.S., Europe and Japan unavoidably sank into a recession, and so did other nations such as Singapore, Taiwan and Hong Kong which rel ied heavi ly on those economies. This global economic abyss would perhaps lead to another radical turning point of the Thai economic system and export sector.

Fallouts from the world economic crisis on Thai exports have become increasingly distinct, as seen from a sharp fall in the November 2008 export value of 18.6% compared with the corresponding period of 2007, which was the first shrinkage in over six years since March 2002. Although it remains unclear how the Thai exports would turn out in 2009 and the following years, the chance of the export value growing by a two-digit rate as before is unlikely to happen so long as the global crisis has not yet come to an end. This might be the beginning of an export downturn after years of buoyancy. 2009 would thus be a critical turning point of Thai

economy, given that it can no longer rely on the export sector as the key engine of growth while the private sector consumption and investment remain vulnerable and cannot be depended on either. As such, the government’s spending and stimulus package would play an instrumental part in shoring up the Thai economy to ride out this crisis. Aside from the immediate measures to jump-star t the consumption and investment, long-term measures to reinforce Thai entrepreneurs’ competitiveness are similarly indispensable and should be implemented in parallel in order to pave the way for secured and sustained national development in the future. The government-initiated development guidelines towards

1994-1998: Growing with Thai exporters and surmounting obstacles together Upon becoming operational in early 1994, EXIM Thailand took over the packing credit service from the Bank of Thailand and speedily developed by itself new services, which were different from commercial banks’, to meet the demand of exporters, specifically small and new ones. The U.S. dollar-denominated Pre-shipment Financing Faci l i ty, Term Loan for Business Expansion, Long-term Credit for Export of Capital Goods, Financing Facilities for Overseas Construction Contracts, Financing Facil it ies for Overseas Investment, and Export Credit Insurance, all of which had never before been offered by any institutions in Thailand, had gradually been introduced by EXIM Thailand and completely by the end of the first year of its operations.

1994-1998

April 1998 : Organized a seminar on “Liquidity Enhancement Measures for Exports.”

The government then recognized the

necessity to set up a specialized financial

institution to provide financial services for the

export sector and other foreign exchange

earning businesses, and accordingly enacted

the Export-Import Bank of Thailand Act B.E.

2536, with effect on September 7, 1993, to

establish EXIM Thailand, which officially

commenced operations on February 17, 1994.

2009 will mark the Bank’s 15th anniversary of operations. Throughout these years, the Bank has vigorously performed its duties and been strongly committed to supporting and promoting Thai exports, imports and investments at home and overseas, as well as promoting foreign exchange earning/saving act iv i t ies that contr ibute to nat ional economic development. Here is a chronological brief of the Bank’s important developments:

1993

EXIM Thailand officially started operations on February 17, 1994.

• A n n u a l R e p o r t 2 0 0 8 15

14

entrepreneurs’ competit iveness and capabi l i ty enhancement in the long run include infrastructure development to help save costs, notably a

comprehensive logistics system, by improving the rail transport, water transport, and distribution centers to eliminate a weakness lying in Thai logistics cost of as high as 19% of GDP, which is greater than those of many key competitor countries. Thus, logistic system development will be key to the enhancement of Thai operators’ competitiveness and the stimulation of consumption and investment in the wake of economic slowdown. At the same time, it is essential to speedily build a foundation for alternative

energy development before the energy prices

bounce back to the peak again. Thailand has to rely on massive energy imports each year, making up more than 10% of GDP, a figure ranking among the top in Asia. As a consequence, the Thai economy will always be badly hit whenever the global oil prices edge up. Accordingly, the development of alternative energy such as ethanol and bio-diesel needs to be promoted consistently because it not only contributes to fore ign exchange sav ing from oi l import substitution, but also helps to insulate Thailand from oil price fluctuations. Last but not least, rural

development, especially projects related to

agricultural sector, also needs to be placed high on the agenda due to its crucial role in the Thai

economy in terms of both consumpt ion and employment generation. Rural development entails not only infrastructure improvement such as irrigation systems and road networks, but also production efficiency enhancement on an end-to-end basis, ranging from planting, harvesting, processing to marketing, so as to boost the competitiveness of Thai agricultural products, which will be a major springboard for national development in the future. EXIM Thailand and the Role of Development Bank Throughout the past 14 years, EXIM Thailand has

During 1997-1998 when Thailand was hard hit by the economic crisis and while most banks had frozen their lending, EXIM Thailand played a key role

in procuring funds to help boost liquidity

both directly to exporters and through

commercial banks, thereby enabling the

export sector to grow further uninterruptedly. The Bank could raise a total of 1.5 billion U.S. dollars from Asian Development Bank (ADB) and other foreign financial institutions and another 40 billion yen from Export-Import Bank of Japan and other Japanese financial institutions. It also signed an agreement with Export-Import Bank of the United States to guarantee letters of credit issued by Thai commercial banks for goods imports from the U.S. in an amount of 1 billion U.S. dollars. As a result, by end-June 1998, the Bank had outstanding loans of as high as 65,242 million baht, jumping sharply from the pre-crisis 21,516 million baht as of the end of 1996.

1999-2006: Expanding supports for Thai investments abroad along with corporate development Liquidity in the Thai banking sector had risen since 1999 and then hit a record high at a later time, thus resulting in a substantial drop in commercial banks’ demand for loans from EXIM Thailand for re-lending to exporters. Banks fully resumed its essential role as key lenders to the export sector. EXIM Thailand

accordingly shifted its emphasis to supporting

exporters underserved by commercial banks or

providing financial services that contributed to

the development of export and investment

sectors, and took an aggressive role in the

promotion and support of Thai investments

overseas by establishing International Project

Department with a proactive duty to support Thai investors abroad and SME Business Development

1999-2006

May 2000 : MOU signing with Export-Import Bank of India to promote Thai-Indian trade and investments.

Department to support and promote SMEs according to the government policy. 2006-present: Taking a role of “development bank” In 2006, EXIM Thailand deemed it necessary to step up its role beyond that of a mere supporter of exports and Thai investments overseas. The Bank

has shifted its role to a “development bank”

to promote international trade and investment

for national economic development. It made gradual reorganization in 2006 and defined a vision in 2007 to be “a prominent trade and investment financial institution in the Greater Mekong Subregion for economic development.” Strategic plans have been implemented to increase the Bank’s role and preparedness for becoming a full “development bank” to encourage and bolster Thai ventures at home and

• A n n u a l R e p o r t 2 0 0 8 17

16

played an active role in the promotion and support of Thai exports and investments overseas and will remain committed to pursuing this mission, yet to a stronger degree, through the provision of a full range of financial services and other non-financial services, including the creation of business opportunities for Thai exporters and investors abroad. Nonetheless, the Bank is aware that immediate support provided solely to the export industry is not sufficient to bring about sustainable growth in this sector amid the increasingly tougher competition in global trade, particularly in terms of prices. The costs of Thai goods have been higher than those of competitors due to two main factors: one is the

transport cost resulting from a lack in efficient development of the logistics system and the other is the cost of energy caused by most Thai industries’ heavy reliance on oil as their key production factor while Thailand is not an oil producer country. Thus, the oil price volati l ity based on demand/supply situation is a major setback hindering Thai products’ competitiveness in the world market. Based on the above rationales, EXIM Thailand as a specialized financial institution for export promotion recognizes the necessity to adjust its role towards a development bank by expanding the scope of its mission to cover the promotion and support of domestic investments that contribute to the strengthening of

Thai export sector’s competitiveness. These include the development of logistics system, comprising rail transport, water and land transport, port facilities, distribution centers and logistics service providers, and the development of energy and alternative energy sources including independent power producer plants, small power producer plants, very small power producer plants, ethanol and bio-diesel production. Therefore, the fifteenth year of its operations will be a crucial time for EXIM Thailand to lay a solid foundation to become a development bank which plays an active part in the country’s sustainable economic development in the years ahead.

2008 : Invest in MFC Energy Fund to support energy and alternative energy development.

abroad that will contribute to national economic development. Moreover, the Bank streamlined its operations so that it could provide the export sector and Thai investments, both domestic and overseas, with a full range of financial services ranging from credi ts , export credi t insurance, internat iona l investments and equity financing for capital-deficient,

yet promising customers, money and capital market serv ices, to f inanc ia l adv isory and trade and investment information services. Apart from financial support, the Bank is looking to develop its specialization in advisory services to help provide in-depth knowledge and practical advice on special ly-focused or “target” countr ies and industrial sectors. In addition, it has set up the “Export and International Investment Information Center” on the Bank’s website as a reference source for Thai exporters and investors for use in their business operations. The past 15 years has been a time of

strong commitment and dedication to

develop the Bank towards integrity and a

solid financial position and also to assist Thai

exporters and investors amid numerous

2006-present

May 2006 : MOU signing with JBIC and NEDA to promote Thai-Japanese trade and investments in the GMS.

challenging factors and hurdles internally and

externally. Today, EXIM Thailand is well

prepared and aspired to play a role in

“supporting more than exports…for economic

development” and also to be one of the

drivers towards sustainable growth for the

Thai, Greater Mekong Subregion, Asian, and

the world’s economies.

• A n n u a l R e p o r t 2 0 0 8

Operational Policy for 2009

EXIM Thailand will in 2009 operate its business in l ine with the v is ion def ined in 2008 to be “a prominent trade and investment financial institution in the Greater Mekong Subregion for economic development.” The aim is to highlight the significance of Thailand’s economic development through trade and investment ties with its neighbors in the Greater Mekong Subregion, which corresponds with the government pol icy to strengthen economic cooperation with neighboring countries. In parallel, the Bank will continue to promote and support the Thai export sector and investments at home and abroad which contribute to national economic development. In 2009, the Bank will pursue another important miss ion by play ing a proact ive ro le as the government’s mechanism in alleviating adverse economic impacts on Thailand from the global financial and economic maelstrom. It will concentrate on assisting Thai exporters, in particular SMEs, and investors to obtain the required liquidity to carry on their businesses uninterruptedly and helping exporters retain their exist ing market base and tap new markets by providing them with a buyer payment risk insurance service. With the government’s newly injected funds and other supports, the Bank will be able to achieve the mission in assisting exporters and investors more fully. The Bank’s operational policy for 2009 is outlined as follows: 1. Support and promotion of international

trade The Bank will bolster Thai exports according to the government pol icy on aggress ive market diversification with a view to maintaining existing markets and gaining a foothold in new markets, as wel l as develop and upgrade Thai exporters’

international competitiveness by rendering both financial and non-financial services ranging from financial advisory, credit facilities, export credit insurance, to equity participation. In 2009, the Bank will stress proactive marketing to support Thai exporters while gaining better access to Russian importers as well as creating more opportunities for the Bank’s businesses through Thai EXIM International Co., Ltd.’s Moscow branch. Aside from financial services, the Bank will develop new models and channels for Thai export promotion to help increase trade opportunities and mitigate export-related problems and barriers by, for instance, establishing the Bank’s network in target countries, networking with the government and the private sectors in Thailand and overseas in boosting Thai exports’ competitiveness.

2. Promotion and support of Thai

investments abroad The Bank will provide a full range of financial services consisting of advisory service, credit facilities, letters of guarantee, medium-and long-term export credit insurance, investment insurance, and equity financing. In 2009, the Bank will take up a more aggressive role in encouraging Thai investments overseas and boost ing Thai investors’ competit iveness focusing on target industries in Cambodia, Indonesia, Vietnam, India, and Lao PDR. It will also promote the medium- and long-term export credit insurance and investment insurance services to build confidence in business expansion in the overseas markets, and will develop and establish a network and cooperation with the internal and external public and private agencies in diversifying Thailand’s production and marketing base in foreign markets.

1918

3. Promotion and support of Thai

businesses in the country The Bank will expand its role in the promotion and support of domestic investment projects contributing to national economic development such as energy and renewable energy, logistics, infrastructure and public util ities, and environment conservation. 4. Corporate development In 2009, the Bank will focus on capability development in different areas of operations, notably IT system, in a bid to enhance the efficiency in both customer service and internal management and to support new business innovations in the future. Moreover, the Bank will

develop and rationalize its business process by streamlining internal operations of all departments so as to increase the efficiency in customer service and internal management and boost operational efficiency and effectiveness. At the same time, the Bank recognizes the importance of human resources management and development and is committed to enhancing its staff members’ in-depth knowledge and skills in international trade and domestic and overseas investments which will help create value added to the organization while driving the strategies towards the desired targets, as well as supporting overall business operations to achieve the Bank’s mission.

EXIM Thailand creates opportunities for Thai export businesses,

Promotes import for export-oriented production,

Supports Thai investment projects overseas,

To enhance worldwide recognition of the “Thailand’s brand.”

• A n n u a l R e p o r t 2 0 0 8

Overview of Thai Exports in 2008

and Outlook for 2009

Thai Exports in 2008 In 2008, exports remained the key engine of Thai economic expansion, whereas such other sectors as the public and private consumption and investment slowed down. The 2008 Thai exports enjoyed a two-digit growth rate for the sixth consecutive year since 2003 amid several discouraging factors erupting since the beginning of the year, starting with the baht appreciation and rising production costs driven by sharp price hikes of consumer goods, in particular the global crude oil prices which almost reached 150 U.S. dollars/barrel in July. Towards the end of the year, Thai export sales were buffeted by the world economic downturn, with Thai land’s key trade partners slipping into a recession after a burst of

global financial crisis which posed major spillovers on the real sector of many countries. Thailand, as part of the global supply chain, was inevitably affected by the said crisis. Thai exports were badly hit again by the Bangkok airport blockade from late November until early December, which was the usual peak period of exports to serve the year-end festive season, leading to a shrink of more than 10.0% in Q4 exports. However, the robust growth of 25.8% in the first three quarters helped bolstering the whole-year exports to grow by 15.6% with total value of 177,841 million U.S. dollars, or approximately 5.85 trillion baht, representing as high as 64.3% of Gross Domestic Product (GDP).

Thai Export Value

180,000

120,000

60,000

0 2003

USD million

Source: Ministry of Commerce

Export value (USD million)

Growth rate (%)

Export value to GDP (%)

80,040 96,503 110,937 129,720 153,865 177,841

17.4 20.6 15.0 16.9 18.6 15.6

56.2 59.7 62.6 63.0 62.4 64.3

2004 2005 2006 2007 2008 Year

2322

Key Export Items

Exports of agricultural products in 2008 increased healthily, resulting from concerns over global food crisis triggered by severe climate changes in many regions, which prompted several countries to limit their exports of agricultural products albeit the rising global demand, especially in emerging markets. Due to the soar ing globa l o i l pr ices f rom the fundamental factors of demand and supply and the oil price speculation by funds, numerous countries have increasingly used their crop plantation for production

In 2008, all export product categories grew favorably in value terms, with agricultural products rising by 32.8% (compared with 15.5% in 2007) and agro-based industrial products by 23.4% (compared with

Export Value by Product Category

160,000

120,000

80,000

40,000

0 2005

(16.3%) (15.3%)

(20.5%) (11.1%)

(1.2%) (10.0%)

(25.7%) (13.7%)

(15.5%) (19.1%)

(32.8%) (23.4%)

USD million

Note: Figures in brackets represent growth in the corresponding period of the previous year. Source: Ministry of Commerce

2006 2007 Year

2008

86,765 100,068 120,560 133,892

10,447 13,131 15,168 20,140

7,009 7,971 9,490 11,714

Industrial products

Agricultural products

Agro-based industrial products

of alternative energy, leading to a record-high surge in prices of many farm products. Nonetheless, Thai agricultural products in 2008 were also faced with discouraging factors, including a stronger baht compared to other competitors’ currencies and tough competition from newcomers, especially Vietnam in the chilled/frozen fresh seafood category. The items with robust export growth were rubber , r ice, processed chicken meat, tapioca products, fruits & vegetables, and fishery products.

19.1% in 2007). Meanwhile, growth in industrial products decelerated, yet to a two-digit rate of 11.1% (against 20.5% in 2007).

• A n n u a l R e p o r t 2 0 0 8

The export value of agro-based industrial

products continued to expand favorably in line with the world market demand with the exporters being able to adjust prices upward in accordance with the rising raw material costs. The items experiencing robust export growth were canned tuna, canned shrimps, sugar, beverages, soups & preparations therefor, and palm oil. With strong growth in the first three quarters of 2008, exports of industrial products served as the key driver of the overall expansion. Major contributors representing as high as 38.0% of total export value were electronic products such as computers and peripherals, integrated circuit boards, electrical

appliances, vehicles, equipments and parts as overseas parent companies continued to place their main regional production base in Thailand. However, export of industrial products recorded a sharp decline in the last quarter of the year and, similar to other product categories, were battered by the global economic quagmire which pushed down the purchase orders and the blockade of Bangkok airports in late November resulting in shipment delays and erosion of importers’ confidence. Considered as durable goods which rely heavily on buyers’ income, industrial products were among the most sensitive categories to be promptly hurt when the global economy slips into a deep recession.

Key Export Items with High Growth Rate in 2008*

Motor vehicles & parts

Jewelry & accessories

Finished oil

Rubber

Rice

Iron & steel products

Rubber products

Canned & processed seafood

0 5,000 10,000

(20.1%)

(53.7%)

(93.1%)

(20.4%)

(78.9%)

(17.3%)

(24.5%)

(23.4%)

15,000 20,000 USD million

Note: * Export items with growth rate over 10% and export value exceeding 3 billion U.S. dollars in 2008. Figures in brackets represent the growth rates. Source: Ministry of Commerce

2524

Export Markets Thai export va lue to the main markets increased by 10.7% in 2008, while that to the

China

Export Value Growth 9.1% Proportion of Thai Exports 9.1% (against 9.7% in 2007) China remained reliant on many Thai products as feedstock for manufacturing of export goods, notably rubber and plastic resins, leading the export value of these products to this market to continue to grow.

Export Value Growth 36.8% Proportion of Thai Exports 5.7% (against 4.8% in 2007) Thai export value to Cambodia saw a growth rate of 50.5%, Myanmar 39.0%, Lao PDR 35.5% and Vietnam 31.9%. The good performers in these markets were finished oil, iron & steel products, plastic resins, chemicals, construction materials, rubber products, and beverages.

Indochina and Myanmar

Exports to Emerging Markets in 2008

emerging markets expanded by 21.2%. Here are some interesting facts about Thai exports:

• A n n u a l R e p o r t 2 0 0 8

Africa Export Value Growth 44.5% Proportion of Thai Exports 3.8% (against 3.0% in 2007) The export value to Nigeria rocketed by 149.2% while that to South Africa rose 27.7%. The key export products to African countries were rice, canned & processed seafood, iron & steel products, and rubber products.

South Asia Export Value Growth 20.0% Proportion of Thai Exports 2.9% (against 2.8% in 2007) Thailand captured a growth rate of 27.7% in export value to India, driven chiefly by the Thai-Indian FTA. In addition, India’s fast growing economy heightened its import demand for Thai products such as computers & peripherals, plastic resins, rubber, and motor vehicles, equipment & parts.

Middle East Export Value Growth 25.2% Proportion of Thai Exports 5.5% (against 5.1% in 2007) Thai export value to Oman soared sharply by 92.0%, Saudi Arabia 40.6%, and the United Arab Emirates 26.4%. Best selling goods to these markets included vehicles, equipment & parts, rice, iron & steel products, jewelry & accessories, air-conditioners & parts, and canned & processed seafood.

2726

Latin America Export Value Growth 23.6% Proportion of Thai Exports 2.6% (against 2.5% in 2007) The export value to Ecuador expanded by 41.6% and Brazil 31.0%. Main export items to Latin America comprised motor vehicles, equipment & parts, rubber, machinery & parts, and rubber products.

Eastern Europe Export Value Growth 27.5% Proportion of Thai Exports 1.8% (against 1.6% in 2007) Thai exports to Russia rose by 55.6%, Poland 16.3%, and Czech Republic 15.0%. The best selling items in Eastern Europe were computers & peripherals, motor vehicles, equipment & parts, rubber, canned & processed seafood, and canned & processed fruits.

It is notable that the proportion of Thai exports to emerging markets against the total export value has edged up significantly, from 37.6% in 2004 to 48.5% in 2008. This was att r ibuted in part to the government’s strategy to diversify the export markets and in part to Thai exporters’ adaptability to reduce over-dependency on a few main markets and, instead,

secure a greater foothold in the emerging markets. Moreover, the main markets’ economies have gradually signaled a slowdown while the emerging markets still enjoy favorable economic growth, which consequently leads to greater import demand for several Thai products.

• A n n u a l R e p o r t 2 0 0 8

Export Outlook for 2009 In 2009, Thai exports are to be closely watched and exporters will face greater difficulties caused by external factors. With the high export growth base in 2008, it is therefore very likely that Thai exports will shrink for the first time in eight years since 2001. Major discouraging factors are: • Import demand from trade partners will

slow down or may slip into shrinkage. Many major hurdles, especially the U.S. financial turmoil that has spread across other key economies such as the European Union and Japan as well as emerging markets which are vital suppliers in the global supply chain, are expected to hamper consumers’ purchasing power and confidence on a global scale and dampen the demand for products and services. •Exporters will face deepening fluctuations

in export costs. The global financial crisis has panicked the capital and financial markets around the world. International capital flows have changed rapidly

and become unpredictable. As a result, exporters are prone to risks associated with increased volatility in the exchange rates as well as prices of consumer goods and raw materials, the key production costs. •Small and medium exporters will likely

suffer from liquidity crunch. The declines in sales, possible payment defaults by buyers hit by spillover impacts from the economic woes, and financial institutions’ stringent lending to the export sector will altogether plunge exporters into liquidity crunch. Moreover, in many segments, subsidiary companies in Thailand are unable to financially rely on their ailing parent companies overseas and must instead turn to domestic funding sources, hence indirectly putting pressure on small and medium exporters in terms of access to funding sources. • Non-tariff measures are more prevalent

in international trade. This will retard the overall internat iona l t rade growth in 2009 which wi l l unavoidably affect Thai exports.

Thai Export Value to Main Markets vs. Emerging Markets

100

80

60

40

20

0 2008

Year

51.5%

62.4% 48.5%

37.6%

Emerging Markets

Main Markets

2004

%

Source: Ministry of Commerce

2928

Despite the above threats, Thai exports have continuously adapted themselves by expanding to emerging markets. These emerging economies, though similarly harmed by the global economic slump, still have to depend on imported products and services in terms of both quantity and quality, thus providing much room for Thai exporters to penetrate. As numerous Thai products have been developed to

the world market standards, while major competitors, like China, are being plagued by product quality problem, Thailand should grab this opportunity to capture the market share once occupied by China. Meanwhile, the government sector has taken both proactive and reactive measures in assisting the export sector to ride out this world economic and financial pain.

EXIM Thailand promotes domestic investment projects,

Develops infrastructure, energy and alternative energy industries,

Accelerates the integration between logistic providers, including

port facilities and distribution centers,

To enhance the Thai export sector and national economic development.

• A n n u a l R e p o r t 2 0 0 8

Significant Developments in 2008

1. Organizational Restructuring EXIM Thailand has restructured its marketing units by consolidating credit advisory function with that of export credit insurance to enable the Bank to provide fu l ly - integrated serv ice to customers. Specifically, it merged Small Business Development Department, Business Promotion Department and marketing units of Export Credit Insurance Department to form Business Promotion Department 1 and Business Promotion Department 2. These two new departments are responsible for provision of credit facilities and export credit insurance service, ranging from acquisit ion of new customers to acceleration of existing customers’ credit utilization, and designing of credit products and other financial services including export credit insurance service for exporters in a more efficient manner. 2. Product & Service Development and Improvement • The Bank has expanded export credit

insurance service through commercial banks to enable exporters, who are banks’ customers, to boost their exports to existing markets and penetrate new markets with confidence amid risk factors from international economic and political uncertainties and also to offer more flexible and competitive terms of payment to their buyers. EXIM Thailand’s export credit insurance service represents a hedging tool against risk from international trade, covering a complete export transaction process from checking of foreign buyers’ creditworthiness to collection of troubled debts. The Bank entered into an MOU to promote export credit insurance service in cooperation with Siam City Bank Plc. and Krung Thai Bank Plc.

• The Bank rolled out the EXIM FLEXI Service, which is a new type of export credit insurance facility that features discounted premium rates, shortened work process, and increased claim payment up to 90% of loss incurred to exporters who have honored the agreement terms, but did not receive payments f rom the buyers. EXIM FLEXI is sui tab le for experienced exporters who maintain systematic payment records and prefers flexible coverage that matches their business nature, with simplif ied document preparation process. • The Bank adopted the EXIM Credit Fast Track system in the approval process for a working capital facility not exceeding 5 million baht to small exporter with annual sales not over 100 million baht. This is aimed at giving small promising operators a quick access to funding and readiness to penetrate or expand export markets, while boosting the Bank’s efficiency and effectiveness in time and personnel management. • The Bank opened the “Export & Overseas Investment Information Center” on its website (www.exim.go.th) as a resourceful information service providing Thai exporters, investors and the general public with easy access to information on the current economic movements of Thailand and its trading partners. The site also features other economic information provided by country and by product category in the agriculture, manufacturing and service sectors. The webpage is also linked to other related agencie’s websites. This is one of the Bank’s non-financial services developed to help increase Thai entrepreneurs’ business potential in the wake of global economic woes and tough competition.

3332

3. Capital Increase The Ministry of Finance injected 1.3 billion baht in new funds for EXIM Thailand to enhance its ability to fulfill the mission of being a state-owned specialized financial institution with the key role in supporting and promoting export, import and investments in Thailand and abroad while contributing significantly to national economic development. 4. Overseas Network Expansion EXIM Thailand set up Thai EXIM International Co., Ltd. on May 27, 2008 to facilitate Thai trade and investments in large emerging markets with economic growth potentials. The company opened its first branch in Moscow, Russia in November 2008. 5. Relationship Development with External Agencies to Support Thai Trade and Investment Overseas Local Agencies

• The Bank signed an agreement to coordinate with Small and Medium Enterprise Development Bank of Thailand in providing financial services to exporters with an aim to expand bi lateral cooperation in rendering comprehensive support on international trade to SME exporters. • The Bank concluded a memorandum of understanding with the Government Savings Bank (GSB) in mutual business supports in various areas such as international business, export credit insurance, financial facilities, shared branch offices, and joint lending and investment. In December, GSB opened a service outlet at EXIM Thailand Headquarters, whereas

the Bank also opened a sub-branch at GSB Bang Rak Branch. All other coordinated activit ies wil l be completely launched by early 2009. The two banks will open new sub-branches in the following year in the areas with business potentials. • EXIM Thailand arranged seminars in conjunction with numerous al l iance agencies, namely, the Federation of Thai Industries, the Thai Chamber of Commerce, the Thai Bankers’ Association, Thai-Russian Business Council, Thai-Indonesian Business Council, the Stock Exchange of Thailand, the Market for Alternative Investment, Investor Club Association, the Tourism Authority of Thailand, the Agricultural Futures Exchange of Thailand, and Thai Texti le Merchants Association. The seminars were aimed at educating Thai businessmen and the public on domestic and international trade and investment issues that would benefit their business operations.

International Agencies • The Bank signed an MOU with Nigeria’s Bank of Industry Limited to join forces in encouraging an exchange of information that is crucial for the driving of economic and industrial advancement in the two countries and in the Asian and African Regions. • As Chairman of the Regional Cooperation Group for Asia (RCG), EXIM Thailand’s President participated in an RCG special conference with the executives of Asian Export Credit Agencies from nine member nat ions, including Thai land, namely, Austra l ia , Indonesia , Japan, South Korea, Malays ia , the Philippines, Hong Kong, and Taiwan. At such meeting, all member countries reached an agreement on exchange of credit information and enhancement of ability to withstand risk in international trade in order to ensure that the export insurance and other services

• A n n u a l R e p o r t 2 0 0 8

could well respond to the exporters’ needs in the wake of the world financial crisis. • The Bank joined the 14th Asian EXIM Banks Forum in Australia with nine members, including Thailand, namely Australia, Indonesia, Japan, South Korea, Malaysia, the Philippines, China, and India. The nine countries concluded an Action Statement to jointly prepare the Master Agreement to define a cooperative framework in the provision of credit and insurance services and exchange of information through a central website, www.asianeximbanks.org. Moreover, the Bank has accepted to host the 15th forum to be arranged in Thailand in 2009. • In 2008, EXIM Thailand welcomed foreign missions visiting Thailand to strengthen bilateral relationship and discuss the possibilities of Thai-foreign trade and investment opportunities. Among them were Indonesian House of Representatives’ Ad Hoc Committee on Export Credit Agencies, CEO of Bhutan National Bank, delegates from Tanzania’s Central Bank, Ministry of Finance & Economics, and Investment Bank, and a group of Vietnamese businessmen.

• EXIM Thailand’s President was invited to the Third GMS Summit Meeting in Vientiane, Lao PDR, in his capacity as Co-Chairman for Session 3: Enhancing the Involvement of Smal l and Medium Sized Enterprises in the Export Market, the GMS Business Forum (GMS-BF), with an aim to promote multilateral economic cooperation in the Mekong Subregion. • The Bank initiated an Asian personnel exchange program in a bid to enhance its staff members’ in-depth knowledge about countries with economic potentials, which are target countr ies for Thai entrepreneurs, with pilot projects launched with Indonesia and Lao PDR. The program allows for mutual exchange of knowledge that is useful to Thai exporters and investors who will then be provided with the informat ion and advice on trade and investment in those countr ies. The exchanged knowledge covers economic overview, trade & investment opportunities, financial & banking systems, relevant business regulations, and more.

3534

Operating Results and Financial Position in 2008

Operating Results

Overview In 2008, EXIM Thailand posted a net profit of 201 million baht, a decrease of 305 million baht from the net profit of 506 million baht in 2007. This was because the net interest and dividend income declined by 166 million baht while bad debts and doubtful accounts rose by 167 million baht. Moreover, the Bank’s loss on debt restructuring increased by 154 million baht, whereas non-interest income went down by 26 million baht and non-interest expenses fell by 208 million baht. Net Interest and Dividend Income The Bank’s net interest and dividend income in 2008 amounted to 1,301 million baht, down by 166 million baht or 11.3% from that of 1,467 million baht a year earlier. Such decline was ascribed to a fall in interest revenue from loans of 535 million baht or 16.1% from 3,325 million baht in 2007 to 2,790 million baht in 2008. The receipt of interest on non-accrued loans decreased by 143 million baht. Interest revenue from interbank and money market items reduced by 80 mi l l ion baht and income from investments dropped by 140 million baht. Meanwhile, interest expenses went down correspondingly, by 589 million baht or 23.3% from 2,524 million baht in 2007 to 1,935 million baht in 2008 due to downward adjustment of money market interest rates and the Bank’s appropr iate sources and uses of fund management.

Non-interest Income Non-interest income fell by 26 million baht or 3.9% from 673 million baht in 2007 to 647 million baht in 2008. Gains on investments declined by 40 million baht. Fees income moved up by 7 million baht. Export credit insurance income decreased by 14 million baht due to reduction of insurance premium rates. Gains on exchange rose by 14 million baht and gains on sale of properties foreclosed increased by 35 million baht. The Bank recorded a decrease of 26 mi l l ion baht in bad debt and wr i t ten-off debt recovered. Other income dropped by 2 million baht. Non-interest Expenses The Bank recorded non-interest expenses of 586 million baht in 2008, down by 208 million baht or 26.2% from 794 million baht in 2007. Fees and service expenses fell by 20 million baht. Expenses on export credit insurance grew by 29 million baht, comprising 18 million baht of claim payments and 11 million baht of reinsurance premiums. This resulted from the Bank’s first-time reinsurance with an Ireland-based insurance company to lower risks and enable greater provision of export credit insurance according to the existing capital funds. Loss on impairment of properties foreclosed declined by 237 million baht. Bad Debts & Doubtful Accounts and Loss on Debt Restructuring The Bank recorded bad debts & doubtful accounts expense and loss on debt restructuring of 1,161 million baht in 2008, rising by 321 million baht or 38.2% from 840 million baht in 2007. The amount came from bad debts & doubtful accounts expense of

• A n n u a l R e p o r t 2 0 0 8

1,413 mill ion baht and reversal of loss on debt restructuring of 252 million baht. Net Profit In 2008, the Bank earned a profit before bad debts & doubtful accounts expense and loss on debt restructuring of 1,362 million baht, up by 16 million baht or 1.2% compared with 1,346 million baht in 2007. It showed a net profit of 201 million baht, a decrease of 305 million baht from the net profit of 506 million baht in 2007. Financial Position Assets As of the end of 2008, the Bank had total assets of 59,853 million baht, reducing by 5,538 million baht or 8.5% from 65,391 million baht at the end of 2007, caused primarily by a decline of 695 million baht in investments, 2,004 million baht in loans, and 1,054 million baht in derivative revaluation. In 2008, the Bank transferred loans under the asset sa le agreement in 2007 in the amount of 1,639 million baht. The Bank’s allowance for doubtful accounts and revaluation allowance for debt restructuring as of the end of 2008 accounted for 3,047 million baht, falling by 272 million baht or 8.2% from 3,319 million baht as of end-2007. Liabilities Total liabilities as of year-end 2008 were 50,022 million baht, declining by 7,415 million baht or 12.9% from 57,437 million baht at the end of 2007, with a

decrease of 355 million baht in deposits, an increase of 4,075 million baht in interbank and money market i tems, and a drop of 10,589 mi l l ion baht in borrowings. In 2008, bonds worth 16 billion baht became due. Capital Funds The Bank’s capital funds stood at 9,831 million baht as of end-2008, up by 1,877 million baht or 23.6% from 7,954 million baht at the end of 2007 as a result of a capital increase of 1,300 million baht by the contribution of the Ministry of Finance, an increase of 376 million baht in hedging reserve and revaluation surplus on investments and 201 million baht in retained earnings, both appropriated and unappropriated. Asset Quality As of year-end 2008, non-performing loans (NPLs) totaled 4,727 million baht or 9.2% of loans and accrued interest receivables, an increase from 2,925 million baht or 5.5% of loans and accrued interest receivables as of the end of 2007. In 2008 there were new NPLs of 3,671 million baht, largely coming from large customers. However, the Bank successfully resolved some NPLs, resulting in a decrease of 1,869 million baht in NPLs. Allowance for doubtful accounts as of the end of 2008 amounted to 2,878 million baht, representing 60.9% of NPLs. Structure of Funding Sources and Uses The Bank’s key funding sources were borrowings and interbank and money market items which

3736

constituted 55.3% and 19.6% of total liabilities and capital as of year-end 2008, respectively. The borrowings totaled 33,122 million baht, consisting of EXIM Thailand bonds of 21,876 million baht and other borrowings of 11,246 million baht. Of such bonds, 32.9% were issued locally and 67.1% were issued abroad. The interbank and money market items accounted for 11,733 million baht, of which 91.3% came from local banks and 8.7% from overseas. The Bank also raised deposits from credit customers of 4,301 million baht. Significant application of funds included loans and interbank and money market items that were investments and liquidity management, representing 84.8% and 9.1% of total assets as of year-end 2008, respectively. Of the total loans, 72.5% were domestic and 27.5% were overseas. As for the interbank and money market items, 72.0% were domestic and 28.0% were overseas. Adequacy of Capital Funds The Bank’s capital adequacy ratio (CAR) as of year-end 2008 stood at 19.1%, which was far above

the minimum CAR requirement of 8% as stipulated in the Ministerial Regulation, 1995 (B.E. 2538) regarding the maintaining of capital funds of EXIM Thailand. Capital funds refer to the paid-up capital, reserves and net profit after appropriation and after deduction of loss incurred in all accounting periods and the provision from asset revaluation. Credit Facilities In 2008, the Bank approved new loans and guarantees to exporters, business operators involved in exports, foreign exchange earning enterprises and Thai entrepreneurs operating businesses abroad in an amount of 29,793 million baht, rising by 47.3% from 2007. The total aggregate amount of loans and guarantees approved until the end of 2008 stood at 112,782 million baht, up 7.5% from end-2007. The outstanding loans as of year-end 2008 amounted to 50,748 million baht, a drop of 3.8%, whereas the outstanding guarantee obligations declined 19.4% to 5,333 million baht. The business volume in 2008 stood at 120,695 million baht, up 2.7% from 2007.

• A n n u a l R e p o r t 2 0 0 8

Overview of Credit and Guarantee Facilities as of Year-end

1. Credit and guarantee lines 112,782 104,893 122,865

a. Classified by borrowers’ business

Domestic 84,570 82,242 94,616

Credit 78,559 77,366 90,450

Guarantee 6,011 4,876 4,166

Overseas 28,212 22,651 28,249

Credit 22,271 17,324 21,266

Guarantee 5,941 5,327 6,983

b. Classified by credit term

Working capital 74,733 70,829 77,202

Medium- and long-term loan 38,049 34,064 45,663

2. Outstanding credits 50,748 52,752 57,287

a. Classified by borrowers’ business

Domestic 36,508 40,049 43,941

Overseas 14,240 12,703 13,346

b. Classified by credit term

Working capital 27,742 29,319 28,085

Medium- and long-term loan 23,006 23,433 29,202

3. Guarantee obligations 5,333 6,618 8,562

Domestic 2,332 3,671 5,000

Overseas 3,001 2,947 3,562

Unit : Million Baht

Items 2008 2007 2006

3938

Outstanding Credits Classified by Industry as of Year-end 2008

Construction 0.2%

Industrial goods 20.6%

Agricultural products 15.6%

Services 15.5%

Real estate 1.2%

Transportation and communication 6.6%

Others 8.6%

Mining and fuels 8.8%

Agro-industrial products 10.8%

Public utilities 12.0%

2008

2008

Guarantee Obligations Classified by Industry as of Year-end 2008

Others 0.1%

Transportation and communication 0.1%

Construction 54.1%

Public utilities 3.3%

Services 4.0%

Agro-industrial products 5.7%

Agricultural products 7.6%

Industrial goods 25.0%

• A n n u a l R e p o r t 2 0 0 8

Working Capital Loan

Term Loan for Merchant Marine Total

Items Business Expansion Financing

2008 2007 2008 2007 2008 2007 2008 2007

Financial Services for Exporters and Related Domestic Operators These financial services are available in the form of short-term loans to meet working capital needs and medium- and long-term loans to f inance the investment, expansion or improvement of export-oriented production and businesses that earn/save foreign exchange. The Bank also provides guarantee services through issues of various types of export-related letters of guarantee to counterparties of exporters; for instance, guarantee for payment of public utility bills, guarantee for payment of import duty on raw materials for export-oriented production, revolving guarantee for tax & duty payment, etc. The

said guarantee services help enhance liquidity for exporters in their business operations. Apart from encouraging entrepreneurs to increase their production capacity, the Bank in 2008 expanded its role in support ing and promoting domestic investment projects that contribute to the country’s economic development. It extended, for example, credits for service expansion or improvement of Thai logistics, merchant marine, and shipbuilding, as well as freight forwarder, infrastructure and public utilities projects, energy and alternative energy projects such as ethanol and crude palm oil, and support for import of capital goods, machinery and technical know-how for the development and efficiency improvement of Thai exported goods.

Financial Facilities for Exporters and Related Domestic Operators Unit : Million Baht

• New approvals during

the year

- Credit

- Guarantee

• Approvals as of year-end

- Credit

- Guarantee

• Outstanding credit facilities

as of year-end

• Guarantee obligations as of

year-end

• Business turnover during

the year

19,242

16,290

2,952

74,733

68,722

6,011

27,741

2,332

120,695

1,062

1,062

-

3,059

3,059

-

2,497

668

668

-

6,778

6,778

-

6,270

20,972

18,020

2,952

84,570

78,559

6,011

36,508

2,332

120,695

16,928

14,434

2,494

70,829

65,953

4,876

29,319

3,671

117,524

119

119

-

3,092

3,092

-

3,003

1,091

1,091

-

8,321

8,321

-

7,727

18,138

15,644

2,494

82,242

77,366

4,876

40,049

3,671

117,524

4140

Financial Services for Thai Businesses Abroad

The services are available in short-term and long-term loans and letters of guarantee for overseas investments of Thai investors including those pursuing service contracts abroad in the areas of construction, bui ld ing face- l i f t , machinery maintenance and modification, technical consulting, etc. The guarantee covers different stages of a project from bidding to completed construction, in the form of bid bond, advance payment guarantee, retent ion bond, performance bond, and so on. The Bank may either issue letters of guarantee directly to foreign employers or counter-guarantee partner banks. In 2008, the Bank rendered both financial and non-financial services to promote overseas investments among Thai business operators. Additional credit

amounts were granted to 13 investment projects in six countries including Cambodia, Qatar, Maldives, Indonesia, Malaysia, and Lao PDR, covering six industr ies, i .e. construct ion, mining and fuel , transportat ion and communicat ion, agro-based industries, public utilities, services and others. Lending to the Mekong Subregion represented 61% of total additional credits for overseas investment promotion in 2008. As for non-financial services, the Bank set up a national team of special ists who have in-depth knowledge and expertise in key industries of target countries to give industrial insight and advice to Thai exporters and business people having interest in overseas investments. The Bank also prepared comprehensive analytical information on target industries and countries for dissemination among exporters and investors to help boost thei r international competitiveness.

Facilities for Overseas Projects

• New approvals during the year 8,821 2,089 5,576

- Credit 8,397 1,688 5,092

- Guarantee 424 401 484

• Approvals as of year-end 28,212 22,651 28,249

- Credit 22,271 17,324 21,266

- Guarantee 5,941 5,327 6,983

• Outstanding credit facilities as of year-end 14,240 12,703 13,346

• Guarantee obligations as of year-end 3,001 2,947 3,562

Unit : Million Baht

Items

Facilities for Overseas Projects

2008 2007 2006

• A n n u a l R e p o r t 2 0 0 8

Export Credit Insurance and Investment Insurance Description and Scope of Service To assist Thai exporters and investors in hedging against risks incidental to their export and investment activities abroad, EXIM Thailand has developed diverse types of export credit and investment insurance facilities that meet customers’ different requirements according to the nature of their business. Here are the services offered by the Bank: • Short-term export credit insurance • Medium- and long-term export credit insurance • Investment insurance Short-term Export Credit Insurance This facil ity is aimed at boosting exporters’ confidence in making international trade transactions and protecting them from risk of not receiving payment for goods. The service caters for exporters offering payment terms of not over 180 days to buyers under the terms of Letter of Credit (L/C), Documents against Payment (D/P), Documents against Acceptance (D/A) and/or Open Account (O/A). For exporters facing payment defaults by buyers or issuing banks, caused by either commercial or political reasons, EXIM Thailand will indemnify them for loss incurred based on the type of risk and service at the maximum rate of 90% of loss realized. Today, the

Bank provides coverage over all kinds of goods exported to buyers in 208 countr ies in seven continents. Aside from export credit insurance, the Bank also renders buyer/bank risk assessment service (BRA) to help analyze creditworthiness of overseas buyers or issuing banks. Exporters can use the said assessment information as a basis for decis ion making on business initialization, specification of payment or credit terms that suit their buyers’ needs. Operating Results Short-term Export Credit Insurance Turnover and Insurance Premium Income In 2008, the Bank’s export credit insurance facility covered buyers in 85 countries with insured export turnover of 40,007 million baht and total premiums of 122 million baht. North America occupied the largest share of the insurance turnover, constituting 34.9% of total export value under short-term credit insurance, fol lowed by Western Europe and Asia Pacif ic. Classified by country, the U.S. ranked top with total turnover of 16,863 million baht, followed in order by Australia of 4,265 million baht and the U.K. of 3,345 million baht. Ranked by product, canned & processed seafood came first, followed by chilled & frozen seafood and plastics & plastic products.

4342

Volume of Short-term Export Credit Insurance in 2008 Compared with 2007

Turnover 40,007 41,016 -2.5

Premium income 122 142 -14.1

Unit : Million Baht

Items 2008 2007 Change (%)

Turnover of Short-term Export Credit Insurance by Continent in 2008

Turnover of Short-term Export Credit Insurance by Country in 2008

Latin America 1%

North America 35%

South Africa 4%

Others 37%

U.S.A. 33%

Eastern Europe 3%

Middle East 4%

Africa 6%

Asia Pacific 23%

Western Europe 28%

Italy 4%

Singapore 4%

The Netherlands 4%

U.K. 6%

Australia 8%

2008

2008

• A n n u a l R e p o r t 2 0 0 8

Turnover of Short-term Export Credit Insurance by Product in 2008

Canned and processed seafood 41%

Chilled and frozen seafood 16%

Canned processed fruits and vegetables 4%

Rice and rice products 6%

Jewelry and accessories 7%

Plastics and plastic products 10%

Others 16%

Claim Value

In 2008, the Bank paid claims for short-term export credit insurance to exporters in a total amount of 16.19 million baht. A major cause of the claims

Indemnity Payment by Cause of Claims in 2008

Insolvency 51.9

Non-payment 48.1

Total 100.0

Cause of Claims % (Claim Value)

2008

was buyers’ insolvency. The largest portion of claims was from the U.S.

4544

Claim Value Classified by Country in 2008

Claim Value Classified by Product in 2008

U.K. 1%

U.S.A. 74%

Leather seat covers and furniture 1%

Jewelry and accessories 76%

Germany 3%

Australia 3%

Samoa 6%

American Samoa 6%

Hong Kong 7%

Canned Food 11%

Consumer goods 12%

2008

2008

• A n n u a l R e p o r t 2 0 0 8

Medium- and Long-term Export Credit Insurance This facility provides Thai exporters with coverage against risk of non-payment and loss incurred by financial institutions located in Thailand for the exported goods or services with payment or contract term exceeding 180 days but not longer than five years or for the exports of Thai services with payment or contract term not longer than five years. The insured exporters or financial institutions will be indemnified for non-payment under the sales contract or loan agreement, caused by commercial and political r isks, up to the maximum rate of 90% of loss realized. The insurance covers loss arising during the production period and also the credit period. Operating Results

The Bank’s accumulated medium- and long-term export credit insurance facility extended to Thai businesses as of the end of 2008 stood at 80 million baht. The facility covers construction contracts, machinery and system installation, and export of capital goods to countries such as Qatar, Bangladesh, Sri Lanka, Cambodia, Vietnam and Lao PDR. Investment Insurance This service provides insurance coverage against loss on the insured’s investments arising from political risks caused by imposition of policies, rules and regulat ions or any act ion taken by the host government, including any political disaster that adversely impact the investments and repayment ability of the insured. The Bank provides both equity insurance and loan insurance with the maximum

coverage of 90% of loss realized. Operating Results

Investment insurance policies are currently being issued to investment projects overseas. Social Activities 1. Promotion of Public Well-being and Social Development Activities

•Fund donation for charity The Bank donated 200,000 baht to top up its staff’s donation to the Pediatric AIDS and Family Support Fund under Saeng Thian Foundation and Wat Bot Worradit on the occasion of its 14th anniversary. •Blood donation campaign In February and November, the Bank invited the staff and EXIM Building tenants to donate blood to Vaj i ra Hospita l on the occasion of the Bank’s Anniversary and His Majesty the King’s Birthday Anniversary on Floor 24, EXIM Building, with a total of 100,000 cc of blood donated. •EXIM FORDEC activities for needy children

The Bank in cooperation with the Foundation for Rehabilitation and Development of Children and Family (FORDEC) organized social activities as follows: - Campaigned for cash donat ion through monthly debit of staff’s salary account since 1999, with total donation of about 30,000 baht per month.

4746

- Provided a donation box at the lobby of EXIM Building from which approximately 2,000 baht of donation by staff and the public was collected per month. - Donated 60,000 baht to FORDEC on October 1, 2008 for the project “14th February 14 Organizations Contributing to School Building & Safety for Children: A Building of Hope for Needy, Less Fortunate, Orphaned and Abandoned Children.” • “Build a Dream, Share a Smile by EXIM FORDEC” Project 2007-2008

The Bank inv i ted i ts staf f members and customers to make a cash donation to the project “Build a Dream, Share a Smile by EXIM FORDEC.” Total donation under this project was 1,038,007.95 baht, which was distributed to underprivileged children in Chumphae district, Khon Kaen province as follows: - Child Development Center, Wat Buraphaphirom • Construction of a new school building in Wat Buraphaphirom and donation of educational equipment and other necessary items • Provision of one playground equipment set • Donation of 30,000 baht - Donation of 25,000 baht to Muat Ae Nong Bua School - Donation of 25,000 baht to Non Sa-at Child Development Center - Donation of 25,000 baht to Ban Non Burut School - Donation of 25,000 baht to Ban Non Lan School - Donation of 85,000 baht for the refurbishment of Wat Buraphaphirom - Donation of 40 bicycles to schools

- Organization of a ceremony to hand over a new school building to the Governor of Khon Kaen province in March 2008 in Chumphae district, Khon Kaen province, which was attended by the Bank’s executives and staff, teachers, provincial officers and Chumphae district locals. • Fund donation to Nargis Cyclone victims

The Bank and its staff members jointly donated an amount of 209,000 baht to victims of Nargis Cyclone through the Thai Red Cross Society in June 2008 at the Office of the Thai Red Cross Society. • “Expanding World Vision with Hands-on Experience” Project 2008

In 2008, the project “Expanding World Vision with Hands-on Experience” was arranged for 30 students aged 10-12 of Worradit Wittayaprasut School in November 2008 at the National Science Museum, Khlong 5, Pathum Thani province. Apart from learning about modern technologies, the children were handed out special souvenirs. Among the favorable feedback was the students’ comment citing this experience as “the happiest day of their lives” and said they would share this wonderful experience with their families, teachers and friends.

2. Support of Religious and Cultural Activities & Relationship Promotion with Neighboring Countries

EXIM Thailand co-hosted the Great Sermon and the Royal Kathin Ceremony with an aim to help preserve Buddhist tradition. The Bank in cooperation with the Thai-Laos Association also donated money for the Royal

• A n n u a l R e p o r t 2 0 0 8

Kathin Ceremony at Wat Ammat, Jampasak in Lao PDR to help strengthen the relationship with the neighboring country. Furthermore, the Bank in 2008 continued its co-sponsorship of the S.E.A. Write Award, an activity carried on by the Bank since 1998, with an objective to promote contemporary literary works created by writers in the ASEAN member countries. 3. Support of Education and Dissemination of Knowledge on Trade and Investment

The Bank provided training courses for Thai exporters and investors on the topics of international payment and overseas investment planning in the Greater Mekong Subregion. The Bank also joined other agencies in organizing seminars/panel discussions to provide knowledge for the Thai business communities and the general public in Bangkok and other provinces, as follows: • A seminar on “Thai-Indonesian Trade Prospects in 2008…Problems, Obstacles & Marketing Promotion Activities” • A seminar on “Thai Economy 2008: Development Direction”

• A seminar on “Investment Tips for the Year of the Rat” • A seminar on “New Dimensions of Thai-Russian Business…Golden Opportunity for Thai Entrepreneurs” • A training course on “Good Governance Project: Corporate Social Responsibility” In addition, the Bank sponsored the organization of the 4th Institute of Electrical and Electronics Engineers (IEEE) International Conference on Management of Innovation and Technology (ICMIT 2008), the project “Krung Thai Weaving Dream Schools” and College Economics Quiz Competit ion 2008, as wel l as provided scholarships for monks and needy students. 4. Good Governance Development

To encourage an active and sustainable adoption of good governance principles, the Bank in cooperation with Kenan Institute organized “Good Governance Project: Corporate Social Responsibi l i ty,” and co-sponsored the State-Owned Enterprise (SOE) Award of the State Enterprise Policy Office aiming at promoting commitment to organization development and enhancing efficiency in implementation of good governance principles among state enterprises.

4948

Corporate Governance

Role of the Board of Directors The Board of Directors recognizes the importance of good corporate governance and has consistently adhered to the Ministry of Finance’s state enterprise good governance pr inc ip les and a lso to the international good governance standards. The Board of Directors approved the Bank’s Corporate Governance Policy Statement, under which the Board of Directors acts as the Corporate Governance Committee and there will be a Corporate Governance Management Committee, chaired by the President, to scrutinize matters relevant to principles and compliance with the policy statement before proposing to the Corporate Governance Committee for considerat ion or acknowledgement, as well as coordinate with internal units to ensure the policy statement is concretely complied with. Corporate Governance Policy Statement The Bank’s Corporate Governance Pol icy Statement is a crucial factor contributing to the Bank’s solid and sustainable growth, as well as winning of trustworthiness from stakeholders. In formulat ing and conforming to the Corporate Governance Policy Statement, the Bank has observed the Ministry of Finance’s state enterprise good governance principles and the internationally-accepted good governance standards, encompassing: 1. Accountability 2. Responsibility 3. Equitable Treatment 4. Transparency 5. Vision to Create Long-term Value 6. Ethics

Importance has also been placed on social responsibility. The Corporate Governance Policy Statement consists of eight sections: Section 1 The Board of Directors; Section 2 Financial reports and management reports; Section 3 Risk management, internal control, and interna l audi t ; Sect ion 4 Disc losure and transparency; Section 5 Rights of business owners and roles of EXIM Thailand towards stakeholders; Section 6 Code of ethics; Section 7 Conflict of interest; and Section 8 Policy statement compliance and practical guideline. Board of Directors Board Composition and Structure The Export-Import Bank of Thailand Act, 1993 (B.E. 2536) sets out the composit ion of EXIM Thailand’s Board of Directors as follows: 1. Six ex-off ic io d i rectors f rom concerned government agencies, comprising the Director-General of the Fiscal Policy Office of the Ministry of Finance, the Director-General of the Department of Foreign Trade of the Ministry of Commerce, the Director-General of the Office of Industrial Economics of the Ministry of Industry, the Secretary-General of the Office of Agricultural Economics of the Ministry of Agriculture and Cooperatives, the Director-General of the Department of International Economic Affairs of the Ministry of Foreign Affairs, and one Deputy Governor of the Bank of Thailand as assigned by the Governor of the Bank of Thai land, and EXIM Thailand’s President also serving as director, making up seven board members. 2. Not more than five other directors, who must be qualif ied persons of prominent standing, as

• A n n u a l R e p o r t 2 0 0 8

Qualifications of the Board of Directors The Board of Directors is composed of competent professionals with dependable experience from different spheres of occupations which are beneficial to the organization. All of them are qualified under the Standard Qualifications for State Enterprise Board Members and Staff Act, 1975 (B.E. 2518) and the Amendment. Leadership The Board of Directors plays a vital role in determining the vision, direction, mission and strategic plan of the Bank, as well as in overseeing and monitoring the business administration of the Management on a regular basis, by paying due regards for the business risks and the stakeholders’ interest so as to ensure the Bank’s targets and objectives are fully achieved. In 2008, the Board of Directors streamlined the preparation and review of strategic plan for greater efficiency and effectiveness. For this purpose, a workshop was arranged among the board members and the Bank’s executives at branch manager and assistant vice president level and higher. All parties broadly jo ined in a bra instorming on the plan preparation and review. In addit ion, the Board of Directors closely monitored the Bank’s operation to ensure it aligns with the business plan. The Management was

instructed to regularly report the Board of Directors on a monthly, quarterly, semi-annual and annual basis on the actual performance against the predetermined Key Performance Indicators (KPIs) targets, both in financial and non-financial terms. An emphasis was placed for the Management to report and analyze obstacles hindering the achievement of KPI targets and identify solution measures. Independence Al l board members, both ex-officio directors and other directors, have the freedom of expressing their opinions and using their own discretion within the purview of their duty and author i ty in the interest of the Bank and the stakeholders. The Board of Directors redefined the term “Independent Director” of the Bank in line with the good corporate governance principles of the Ministry of Finance, as follows: - Being a director appointed by the Finance Minister with the approval of the Cabinet, and not being an ex-officio director as stipulated in the Export-Import Bank of Thailand Act, 1993 (B.E. 2536). - Being independent of the Management and the regulator overseeing the Bank. - Having no business relations with the Bank in such a manner that will hinder an independent use of discretion. - Not being a staff, employee or advisor receiving a regular salary from the Bank. - Not being a related party (a natural or juristic person having relationship or connection with the Bank in such a way that influences his/her ability to perform duty independently or neutrally) or a close relative (a person related by blood or by marriage or by legitimate registration such as father, mother, spouse, child, brother, sister, uncle, aunt, or spouse of the foregoing person) of the senior management of the Bank.

appointed by the Finance Minister subject to the approval of the Cabinet whereby at least three of them shall be qualified persons from the private sector. The directors appointed by the Minister shall have the tenure of three years and may be reappointed as director for not over two consecutive terms.

5150

Role, Duty and Responsibility of the Board of Directors 1. To determine the vis ion and important policies and undertake general oversight of the Bank’s business, as well as assume accountability for the performances of the Bank and the Management. 2. To review and approve the Bank’s strategic plan and budget and ensure that the Management follows the plan on a regular basis. 3. To st ipu late regulat ions perta in ing to personnel management, f inance, account ing, procurement and employment, and other activities. 4. To undertake the performance evaluation and fixing of compensation for the top management. 5. To ensure the accounting system, financial reports and account audits are reliable and meet international standards so as to boost confidence of all stakeholders. 6. To make sure an effective internal control and appropriate risk management system is in place. 7. To institute a preventive measure against conflicts of interest among the stakeholders. 8. To ensure the Bank’s operations are in conformity to the good corporate governance principles. 9. Not to act as a member of the procurement and employment committee of the Bank. Role of the Independent Directors The independent directors can freely use their own discretion for any strategic decision making or exploit their specialized skills and experiences to ensure that the interest of the government sector and stakeholders is well protected and that the Bank has compl ied with the good corporate governance pr inc ip les, as wel l as regular ly fo l low up the

Management’s performance. The independent d i rectors cert i fy thei r independence upon being appointed and on a yearly basis. In 2008, meeting among themselves was held in May and the result of the meeting was informed to the Board of Directors. Moreover, the Management was instructed to take actions in accordance with the independent directors’ recommendations. Committees and Subcommittees Appointed by the Board of Directors 1. Board of Executive Directors Composition Pursuant to the Export-Import Bank of Thailand Act, 1993 (B.E. 2536), the Board of Directors has the power to form the Board of Executive Directors. The Board of Executive Directors shall be composed of the President and at least two other, but not more than four, of other members of the Board of Directors, not over a half of whom shall come from ex-officio directors, with one of the appointed members other than the Pres ident appointed to serve as Chairman of the Board of Executive Directors. Power, duty and responsibility The Board of Executive Directors has the duty to approve credits and joint ventures at home and abroad, export credit and investment insurance, debt restructuring and debt correction, budgets, and procurement, purchase and employment transactions; to formulate investment policy and limit; to approve financial transactions and allocation of lines to banks and financial institutions locally and overseas; to approve human resources management; and to perform any other tasks under the authority delegated by the Board of Directors.

• A n n u a l R e p o r t 2 0 0 8

3. Compensation Subcommittee Composition The Compensation Subcommittee is composed of three independent directors. Power, duty and responsibil i ty The Compensation Subcommittee has the duty to fix the remuneration for the top management from executive vice president to president levels and to consider the pol icy and guidel ine for annual payment of remuneration to the top management that fits with the accepted standard and the performance of the individual top executives for final approval by the Board of Directors. Meeting of the Board of Directors The Board of Directors regularly holds a meeting at least once a month. The Chai rman gives importance to a well-balanced allocation of time for presentation and discussion on the critical issue and encourages all board members to fully participate in sharing their opinions on the issue discussed. All board members are welcome to propose any agenda for consideration at the board meeting. The Management places an emphasis on the production of meeting documents suitable in both format and contents and with sufficient information available for decision-making. The documents are delivered to the board members ahead of the meeting date to ensure the directors have enough time to study the information before the meeting. Self-assessment and Competence Development of the Board of Directors The Board of Directors conducts two types of

2. Audit Committee Composition Pursuant to the Bank’s Regulations on the Audit Committee Act, 2002 (B.E. 2545), the Audit Committee shall be composed of at least three, but not exceeding five, directors, at least one of whom must have knowledge in accounting or finance. The Audit Committee members shall have the tenure for a period of three years, but not exceeding the term of their directorship. The Audit Committee member who has ret i red by rotat ion may be reappointed for another term. Power, duty and responsibility

1. Ensure that the Bank’s financial reports are accurate, complete, adequate and reliable. 2. Ensure that the Bank’s internal control system is appropriate and efficient. 3. Ensure that the Bank complies with relevant laws and regulations. 4. Ensure that no conflict of interest is created. 5. Report the Bank’s operating results in terms of efficiency and effectiveness. 6. Prepare and submit an Audit Committee’s corporate governance report to the Board of Directors at least quarterly as well as prepare an Audit Committee report, duly signed by the Audit Committee Chairman, for publishing in the annual report of the Bank. 7. Other dut ies assigned by the Board of Directors. In addition, under the Regulations on the Audit Committee Act, 2002 (B.E. 2545), it is to perform self-assessment on an annual basis and report the assessment results as well as the problems and obstacles to the Board of Directors at least once a year.

5352

performance self-assessment: individual assessment and group assessment, on a yearly basis. In 2008, the Board of Directors approved a modification of the topics and questions in the assessment form to be more concise, clearer and aligned with the mission of the Bank and the Board of Directors. The results of both types of assessment in 2008 were excellent. The Board of Directors attached importance to an adopt ion of the assessment results to continuously improve the governance efficiency. On the side of competence development, the Bank in 2008 arranged an introduction to EXIM Thailand and visit-core-unit program for new-coming directors and proposed the Directors Certification Program organized by the Thai Institute of Directors (IOD) to all members of the Board of Directors for their consideration in attending. In 2008, three board members attended the training program, making the total number of eight board members having attended the program. Financial Reports and Management Reports The Board of Directors reports its accountability for the corporate governance performance in the Bank’s annual report and financial statements, and also reports the Bank’s annual operating results, balance sheets, and statements of income, duly certified by the Office of the Auditor General, which is the Bank’s Auditor, to the Finance Minister before submission to the Cabinet and the Parliament for acknowledgement on a yearly basis. The Board of Directors has entrusted the Audit Committee with the duty of reviewing the f inancia l reports before submission for the board’s acknowledgement on a

quarterly basis. In addition to the financial reports and the audit reports, the Management has regularly prepared management reports on matters such as risk report, strategy and business plan achievement report, for submission to the Board of Directors as a basis for regular performance analysis of the Bank. Risk Management, Internal Control and Internal Audit Risk Management

The Board of Directors has reviewed the risk management f ramework based on the r isk management guideline of the Bank of Thailand and the internationally accepted principles. Moreover, the Board of Directors has designated the Risk Management Committee, consist ing of top management at executive vice president level up, to implement the risk management policy and to oversee and ensure that an effective and eff icient r isk management process is in place, as well as to review the adequacy of the holistic risk management policy and system and submit a report to the Board of Directors, through the Audit Committee, on a quarterly basis. In 2008, EXIM Thai land approved an extra provis ioning pol icy based on the Internat ional Accounting Standard 39 (IAS 39) and the criteria on support of transactions under special government policy, and reviewed the internal control systems to ensure compliance with the principles of the BOT and internat ional standards, i .e. the Committee of Sponsor ing Organizat ions of the Treadway Commission (COSO) and Basel Committee on Banking Supervision, Bank for International Settlements (Basel). The Bank also reviewed and adjusted the key risk

• A n n u a l R e p o r t 2 0 0 8

indicators, risk appetite, and risk tolerance of all risk perspectives so as to cover all types of export and investment services, and reviewed the credit policy, country risk limit, and concentration limit with a view to containing the lending to a single customer, single group of customers, single industry, and single country within the exposure limit set by the Bank. Additionally, the Board of Directors reviewed and revised the delegation of authority for lending transactions, financial management, investment in debt and equity instruments, and export credit insurance and reinsurance in a bid to mitigate and control risks and enhance operational flexibility. The Board of Directors approved the business continuity management, the action plans under the Act and Royal Decree on Electronic Security, and the IT and Communication Master Plan 2009-2011 to enable an uninterrupted customer servicing and business continuity in any emergency event. Internal Control and Audit

The Board of Directors is primarily responsible for supervising and ensuring that the Management adopts a sound internal control and internal audit system. This is to ascertain that the Bank’s internal control, internal audit and operational improvement systems are efficient and effective, financial information is correct, complete, and reliable, and the relevant laws and regulations are complied with. The Office of Internal Audit is to report the operational results to the Audit Committee, which will scrutinize, review and report its supervisory results over the Bank to the Board of Directors on a quarterly basis. In 2008, the Audit Committee considered and approved a three-year audit plan (2008-2010) and a 2008 yearly audit plan, which were developed by the

risk-based audit approach. It also approved the internal audit policy and manual, produced based on the international standards and the Internal Control Standards Act, 2001 (B.E. 2544) stipulated by the Office of the Auditor General, to help control and minimize risks of the Bank to an acceptable level. Information Disclosure and Transparency

The Board of Directors is duty-bound to disclose both financial and non-financial information. The information disclosed must be clear, correct, timely, easy to understand, complete, adequate and reliable. Abiding by the Official Information Act, 1997 (B.E. 2540), the Bank has set up an Information Service Center for the public and stakeholders to gain access to the Bank’s informat ion and has disc losed information through various channels on a complete, adequate and equitable basis. The Bank’s usual information dissemination channels include the annual report, the monthly EXIM E-NEWS magazine, the Bank’s website at www.exim.go.th, press release, press conference, photo release, the Export and Investment Focus pocket book released successively since 1998, and networking with the state enterprise information system of the State Enterprise Policy Office and the Fiscal Policy Office under the Ministry of Finance. The Bank has consistently given full cooperation with respect to complete and consistent information disclosure to the Office of the Auditor General and the Bank of Thailand. Such information included details on the 4-billion-baht loan facility extended to Myanma Foreign Trade Bank (MFTB), a Myanmar State bank, which has drawn considerable public attention. The Bank is committed to sharing relevant

5554

information to enable all stakeholders to understand and appreciate its roles, duties and determination to perform its duty with integrity, transparency and adherence to the good corporate governance principles. Rights of Business Owners and Roles of the Bank towards Stakeholders The Board of Directors recognizes rights of the stakeholders and is strongly committed to protecting the interest of the stakeholders, consisting of: Customers The Bank provides a wide variety of quality financial services of international standard to support Thai exports and investments abroad. The government The Bank has made al l attempts to respond to the pol icy of the Thai government on the promotion of exports and Thai businesses overseas and national development by focusing on its operational efficiency to attain sound performance without incurring any burden on the government. Creditors The Bank concentrates on building up the creditors’ confidence in its solid financial status, with an abi l i ty to str ict ly honor the terms and conditions of the loan agreements. Employees The Bank is committed to continuously developing employee potential and providing a fair compensation system commensurate with the market rate. Code of Ethics The Board of Directors has drawn up the Code of Ethics as a guideline for the board members, the Management and all staff members to uphold to meet the expectat ions of the Bank and the

stakeholders, divided into two sections: 1. Directors’ Code of Ethics The Bank’s directors are to abide by the code of ethics for state enterprise directors set out by the Ministry of Finance and the Directors’ Code of Ethics stipulated by the Bank. 2. Executives and Employees’ Code of Ethics The Bank has established the Code of Ethics for employees by adhering to the principles of integrity, morality and ethics. It encompasses five parts: (1) ethics to the Bank, (2) ethics to the customers, (3) ethics to co-workers, (4) ethics to oneself and the society, and (5) ethics to commercial competitors. For the executives and the directors, there are three more parts to observe: (1) ethics to the shareholder, (2) ethics to the Bank’s employees, and (3) ethics to the society. Conflict of Interest The Board of Directors places importance on the prevention and disclosure of conflict of interest by adopting a written criterion for conflict of interest prevention, which took effect as from March 22, 2006. Such criterion has been incorporated into the Executives and Employees’ Code of Ethics and disseminated on the Bank’s intranet for all executives and staff members to abide by. Additionally, the Board of Directors approved a criterion for granting of credits or investing in businesses involving a conflict of interest based on the regulations of the Bank of Thailand. Under the criterion, the director or authorized person is not allowed to participate in the meeting and vote on the agenda involving the credit extension or investment in business that he himself or his related party has

• A n n u a l R e p o r t 2 0 0 8

vested interest. Any lending or investment decision involving a conflict of interest may not be associated with special conditions deviating from the norms. Over the past, there have never been any transactions with a conflict of interest. Compliance with Corporate Governance Policy and Operational Guideline Aside from being the policy-maker, the Board of Directors a lso sees to i t that the corporate governance pol icy is rev iewed to a lways be appropriate and aligned with the Bank’s targets and mission. The Board of Directors has assigned the Corporate Governance Management Committee to draw up the operational guideline and disclose the corporate governance performance in the Bank’s annual report and website. Remuneration of the Board of Directors and Other Committees Board of Directors EXIM Thailand Board of Directors are entitled to remuneration based on the regulations set out by the Ministry of Finance as follows: 1. Allowance Monthly meeting allowance based on attendance at a rate of 12,500 baht for Chairman and 10,000 baht for each Director. In 2008, 13 meetings were convened, with total meeting allowance entitlements of 1,340,000 baht. 2. Bonus is calculated under the Guideline on Remuneration for State Enterprise Board of Directors based on annual net profit, duration of directorship, meeting attendance, and results of the Bank’s

performance appra isa l for the year of bonus calculation according to the Agreement on State Enterprise Performance Appraisal between the Bank and the Minist ry of F inance. The tota l bonus calculated from the Bank’s performance on 2007 was 1,072,497 baht, whereas the total bonus amount for 2008 is not yet available (as of February 2009), pending the appraisal for the Bank’s performance by the Ministry of Finance under the said agreement. Audit Committee

The Audit Committee receives remuneration on a fixed-rate monthly basis, at a rate of 12,500 baht for Chairman and 10,000 baht for each Director. The remuneration for the first month of Audit Committee membership which is less than 30 days is calculated on a daily pro-rata basis. In 2008, 4 meetings were convened, with total remuneration of 389,516 baht. Other Committees Other committees, namely, the Board of Execut ive Directors and the Compensat ion Subcommittee, receive monthly meeting allowance based on member’s attendance at a rate of 12,500 baht for Chairman and 10,000 baht for each Director. Directors appointed to more than one of these other committees will be remunerated for services rendered for only one of these committees. Board of Executive Directors In 2008, 16 meetings were convened, with aggregate meeting allowances of 550,000 baht. Compensation Subcommittee In 2008, 3 meet ings were convened, with aggregate meeting allowances of 10,000 baht.

5756

Remarks - * Directors completing first term on 31 October 2008 and reappointed for the second term effective from 19 November 2008. - ** Independent directors completing term(s) in 2008. - *** Directors whose official announcement of directorship took place on 17 December 2008 with retrospective effect from 19 November 2008. The Board of Directors Meeting in November was held on 26 November 2008.

1. Mr. Narongchai Akrasanee* (Chairman) 13/13 100 1 Jan - 31 Dec 150,000

2. Director-General, Fiscal Policy Office, Ministry of Finance

Mr. Acksiri Buranasiri (representing Mrs. Pannee Sathavarodom) 7/9 78 1 Jan - 30 Sep 70,000

Mr. Acksiri Buranasiri (representing Mr. Somchai Sujjapongse) 4/4 100 1 Oct - 31 Dec 30,000

3. Director-General, Department of Foreign Trade,

Ministry of Commerce

Mrs. Apiradi Tantraporn 11/13 85 1 Jan - 31 Dec 100,000

4. Director-General, Office of Industrial Economics, Ministry of Industry

Mrs. Atchaka Brimble 9/9 100 1 Jan - 30 Sep 90,000

Mr. Arthit Wuthikaro 4/4 100 1 Oct - 31 Dec 30,000

5. Secretary-General, Office of Agricultural Economics,

Ministry of Agriculture and Cooperatives

Mr. Apichart Jongskul 13/13 100 1 Jan - 31 Dec 120,000

6. Director-General, Department of International Economic Affairs,

Ministry of Foreign Affairs

Mr. Krit Kraichitti 4/5 80 1 Jan - 27 May 40,000

Mr. Thanatip Upatising 2/2 100 28 May - 31 Jul 20,000

Mr. Krit Kraichitti 5/6 83 1 Aug - 31 Dec 40,000

7. Deputy Governor, Bank of Thailand

Mrs. Atchana Waiquamdee 11/13 85 1 Jan - 31 Dec 100,000

8. Miss Orajit Singkalavanich* 12/13 92 1 Jan - 31 Dec 110,000

9. Mr. Wisarn Pupphavesa** 10/11 91 1 Jan - 18 Nov 90,000

Mr. Jeerasak Pongpisanupichit*** 1/2 50 19 Nov - 31 Dec 10,000

10. Mr. Praphad Phodhivorakhun** 10/11 91 1 Jan - 18 Nov 100,000

Mr. Arttachai Burakamkovit*** 1/2 50 19 Nov - 31 Dec 10,000

11. Mr. Pichit Akrathit** 10/11 91 1 Jan - 18 Nov 100,000

Mr. Subhak Siwaraksa*** 1/2 50 19 Nov - 31 Dec 10,000

12. President

Mr. Apichai Boontherawara 13/13 100 1 Jan - 31 Dec 120,000

1,340,000

No. of Percentage Duration of Meeting

Directors Meetings of Directorship Allowance

Attended/Held Attendance for 2008 (Baht)

Board of Directors Meeting Attendance in 2008 Board of Directors

In 2008, 13 meetings of the Board of Directors were convened. Detai ls of meet ings held and

attendance of each director are shown below:

• A n n u a l R e p o r t 2 0 0 8

In 2008, 16 meetings of the Board of Executive Directors were convened. Details of meetings held

In 2008, 4 meetings of the Audit Committee were convened. Detai ls of meet ings held and

Board of Executive Directors

Audit Committee

1. Mr. Narongchai Akrasanee (Chairman) 16/16 100 1 Jan - 25 Dec 150,000

2. Mr. Acksiri Buranasiri 14/16 88 1 Jan - 25 Dec 100,000

3. Mr. Pichit Akrathit 13/14 93 1 Jan - 18 Nov 90,000

4. Mrs. Atchaka Brimble 12/13 92 1 Jan - 30 Sep 90,000

5. Mr. Apichai Boontherawara 16/16 100 1 Jan - 31 Dec 120,000

550,000

1. Mrs. Atchana Waiquamdee (Chairman) 4/4 100 1 Jan - 25 Dec 149,516

2. Mr. Apichart Jongskul 4/4 100 1 Jan - 31 Dec 120,000

3. Miss Orajit Singkalavanich 4/4 100 1 Jan - 25 Dec 118,065

Mr. Arttachai Burakamkovit - - 26 Dec - 31 Dec 1,935

389,516

No. of Percentage Duration of Meeting

Executive Directors Meetings of Directorship Allowance

Attended/Held Attendance for 2008 (Baht)

No. of Percentage Duration of Meeting

Members Meetings of Directorship Allowance

Attended/Held Attendance for 2008 (Baht)

and attendance of each director are shown below:

attendance of each member are shown below:

5958

In 2008, 3 meet ings of the Compensat ion Subcommittee were convened. Details of meetings

Compensation Subcommittee

1. Mr. Narongchai Akrasanee (Chairman) 3/3 100 1 Jan - 25 Dec -

2. Mr. Praphad Phodhivorakhun 1/3 33 1 Jan - 18 Nov 10,000

3. Mr. Pichit Akrathit 3/3 100 1 Jan - 18 Nov -

10,000

No. of Percentage Duration of Meeting

Members Meetings of Directorship Allowance

Attended/Held Attendance for 2008 (Baht)

Remark No remuneration was paid for directors already receiving allowance for executive directors meetings taking place in the same month as the Compensation Subcommittee’s meetings, as stipulated in the Ministry of Finance’s Memo dated 30 June 2004 on Explanation on the Adjustment of State Enterprise Directors’ Allowance.

Auditing

EXIM Thailand appointed the Office of the Auditor General as its Auditor in conformity to the provisions under the Export-Import Bank of Thailand Act, 1993 (B.E. 2536). The yearly audit fee for 2008 accounted for 880,000 baht, with other remunerations amounting to 166,970 baht. Internal Control and Audit

EXIM Thailand places a high degree of importance on internal control and audit, which is an essential process to reasonably assure that the Bank’s operations will lead to an accomplishment of its objectives, the financial and operational reports are reliable, and the laws, rules and regulations both internal and external are complied with, in order to ward off any acts that will likely be detrimental to the Bank’s properties and reputation. Internal audit is also a key factor of good

corporate governance in the monitoring and review to ensure that the Bank’s internal control is carried out efficiently and effectively. The Bank has put in place an appropriate internal control structure with a clearly defined line of command, scope of duties for the executives and staff members and risk management unit. Moreover, the Bank has establ ished in writ ing the operational pol icies, procedures and manuals for easy access and reference by all staff members. Regarding the development of products or services, r isk assessment is to be conducted and risk management guidelines devised before those products are launched. Training is provided to improve staff skills and ensure they could perform their tasks efficiently and accurately. Staff manuals containing the rules, code of ethics as well as punishment for disciplinary offences are provided for all staff members to assure their operations are efficient, transparent and fair to all stakeholders. Moreover, a business continuity plan is available to cope with any

held and attendance of each member are shown below:

• A n n u a l R e p o r t 2 0 0 8

critical incident. The Bank has also incorporated internal control into its business process with segregation of duties to establish a proper check and balance. Any activities that may lead to conflict of interest are identified and processed according to the relevant rules and guidelines. Effective communication channels are established. Performance review and control self-assessment (CSA) are also conducted on a regular basis. The Office of Internal Audit is responsible for the audit of the Bank’s core and risky activities as stated in the internal audit charter approved by the Audit Committee, and independently reported to the Audit Committee. A regular audit is made on the Bank’s compliance with the relevant laws, rules and regulations both internal and external. The Office of Internal Audit also gives advice on the operations to the audited work units so as to add value and improve the performance of the Bank. The Audit Committee, consisting of directors who are independent, plays an important role in ensuring the adequacy and effectiveness of the risk management and internal control processes through regular meetings and discussions with external auditors, the executives and internal auditors, and independently reports to the Bank’s Board of Directors. Information Technology Management Information technology management is one of the key strategies that enable the Bank to realize its business goals and an overhaul of the Bank’s information technology and communication system. In 2008, the Bank carried out an array of IT development activities to ensure a modernized service system and a fast and accurate customer information service, which is part of corporate management in conformity

to good corporate governance principles. The projects implemented are as follows: 1. Customer service • Core banking process: The Bank improved the existing core transaction systems to accommodate new products and services in the future and enhance its public service efficiency. • IT system development: Internal support systems were developed, using web technology, whereas a core banking system was introduced to replace the existing system. All system requirements were identified as a basis for procurement of the systems that are suitable and relevant with the nature of the Bank’s business, support operational and management efficiency as well as assure customer satisfaction. 2. Internal management • Database system: Database management equipment and system were installed for systematic data collection, effective data management and information security streamlining, and also to prepare for the replacement of the existing core system with a new IT system. • Computers and peripherals: Servers were procured and erected to support the core and supporting IT systems. • Communicat ion: Communicat ion between branches and the head office and the Internet system were speeded up by erecting an internal and external communication system at the head office to prepare for the replacement of the existing core system with a new IT system. • System and database security: IT security

6160

programs and equipment were instal led in the application and database systems. • Risk management: Recogniz ing the r isks involved and the importance of internal control for efficient and effective IT management, the Bank applied good management frameworks such as COSO, Cobit, and Project Management System in all IT-based project management. The IT management initiatives throughout the year were intended to prepare the Bank’s IT infrastructure to accommodate its internal processes, customer service operations and business development in the future. New technologies will be adopted to support and ensure higher efficiency in the Bank’s operations in different dimensions. Human Resources Management EXIM Thailand has given high priority to human resources management. The year 2007 marked a crucial step in the modernization of the Bank’s human resources management to ensure greater efficiency and development of employee capability. A human resources performance management system and competency model ing have been appl ied in performance evaluation for annual salary increase and personnel development. In 2008, the above systems were concretely implemented, with the initial stage focusing on enhancement of staff’s knowledge and understanding of the system methodology. Staff members were provided with the knowledge about the system benef i ts , how to speci fy core resul ts or Key Performance Indicators (KPIs), and how to undertake competency evaluation for staff development planning to help narrow the gap between their individual competency evaluated and that expected by the Bank.

The outcome was successful and satisfactory. To accommodate business operations, the Bank in 2008 focused on proactive operation and business diversification. A special training course on intensive change management was provided for a total of 148 staff members at division head to senior department head level. The objectives were to prepare them for changes in the Bank’s business operations and to strengthen their pooled efforts in overcoming obstacles. In addition, the Bank developed the back-office staff’s capability for rotation to marketing function and, thus, could increase the marketing workforce with no need for new recruitments, hence an optimized human resource management. 2008 was the year of economic volat i l i ty , particularly in terms of cost of living. The persistent oil price hikes drove up consumer goods prices and relatively affected the overall economic condition. To help relieve the trouble and boost staff morale, the Bank paid a monthly living cost allowance of 1,000 baht for all staff members, except for higher-level staff members provided with executive cars. In order to enhance career opportunities for competent staff and encourage them to continue working with the Bank, the Bank has revised the position structure by adopting functional titles and corporate titles to allow for staff promotion at both functional level and corporate level, instead of the former promotion by functional title only. In 2008, the Bank arranged five internal training courses involv ing seven classes for 266 staff members and dispatched 1,055 staff members to participate in external training and seminar programs. Moreover, the Bank dispatched two staff to undergo the trade finance and structure finance training under the knowledge transfer program organized in cooperation with Sumitomo Mitsui Banking Corporation

• A n n u a l R e p o r t 2 0 0 8

(SMBC) in the Republic of Singapore. Such kind of cooperation will be gradually expanded in the future. For working safety, the Bank regularly arranges an evacuation practice at least once a year. There is also a timetable set for testing of the readiness of safety system and fire or disaster prevention system. Moreover, to ensure good health of staff, the Bank provides annual physical check-up programs that suit the gender and age of staff members. The Bank has nurtured good labor relations by setting up a staff relation committee to act as center where its staff could express opinions and give suggestions to the Management for improvement of the working condit ion so that they would feel satisfied with their workplace. Many activities were organized for staff to share and demonstrate their talent such as sports competition and social activities. One of these was the construct ion of a chi ld development center at Wat Buraphaphi rom, Chumphae district, Khon Kaen province under the program “Build a Dream, Share a Smile by EXIM FORDEC” in cooperation with the Foundation for Rehabilitation and Development of Children and Family (FORDEC). The Bank’s staff and customers also participated in this project through money donation. Report on Compliance with the Official Information Act 1997 (B.E. 2540) in 2008 After the enactment of the Official Information Act, 1997 (B.E. 2540), which aims at enabling the public to access information of state agencies, EXIM Thailand has adhered to such act consistently. In 2008, it had taken the following actions: 1. The Bank revised EXIM Thailand’s Regulation

on Availability of Information for Public Inspection, 1999 (B.E. 2542) to keep it up-to-date and in line with its organization structure, rules and regulations. It also formulated the Regulation on Provision and Disclosure of Information, 2008 (B.E. 2551) to be a guideline on compilation of the Bank’s information, duties of the department and persons in charge of the information, and procedures for user facilitation and coordination. 2. The Bank has prepared the information in accordance with Section 7(1)-(4) of the Official Information Act, 1997 (B.E. 2540) for publishing in the Government Gazette to keep the public informed of the roles, procedures, organization, contact address, and all servicing formalities of the Bank, which are regularly updated. 3. The Bank established an Information Service Center on Floor 18, EXIM Building, in the office areas of Publ ic Relat ions Div is ion, Off ice of Top Management, where the PR staff are available to facilitate data search. In 2008, there were a total of 350 users, divided into 348 persons accessing the information provided according to Sections 7, 9, and 11, and two persons seeking the information not readily provided. All of them were furnished with the information requested. The data search index was also improved to provide more convenience in data search and the information as required under the above Sections has been updated regularly. 4. The Bank posted the information on its history, vision, mission, corporate governance policies, operational policies, role in supporting government policies, organization chart, the Board of Directors’ prof i les, serv ices, not i f icat ions, and bidding announcements on its website at www.exim.go.th as

6362

another channel for the publ ic to access i ts information with no need to visit the Information Service Center.

5. The Bank has updated the data on the government agency database website, known as GINFO, on a regular basis, as well as posting the GINFO sign on its own webpage.

• A n n u a l R e p o r t 2 0 0 8

Risk Management

Overview

Recognizing the importance of risk management, EXIM Thailand has incorporated risk management into its strategic plan for organization development in order to ensure that the Bank’s r isk management is efficient and in sync with its corporate goals in terms of commercial viability and responsiveness to the government’s development policy, as well as integrate risk management into the organizational culture. The Bank’s risk management is based on the guidel ines of the Committee of Sponsor ing Organizations of the Treadway Commission (COSO), the Basel Committee on Banking Supervision, the U.S. Office of the Comptroller of the Currency (OCC), and the Bank of Thailand (BOT). The Bank categorized risks into six types: (1) strategic risk, (2) credit risk, (3) market risk, (4) liquidity risk, (5) operational risk, and (6) reputational risk. Risk Management Principles In 2008, the Bank developed risk management tools sufficient to support its business operations. Focus was placed on building risk management knowledge and understanding among staff members through training courses, regulations, principles, and handbooks to incorporate risk management into organizational culture. The risk management principles aim at enabling the Bank to manage risks in tune with the acceptable risk level as well as the size and complexity of its business and the corporate goals and within the purview of good corporate governance principles. The risk management principles and practices of the Bank consisted of the following:

1. Clearly Defined Risk Management Framework The Board of Directors has approved an organization-wide risk management framework and a framework for each risk category as guidelines for improvement of risk management environment and operat ion, with an a im to incorporate r isk management into organizational culture, as well as develop efficient business process. Risk assessment is conducted regularly, and a risk map has been devised for key risk containment. Moreover, a risk control plan is implemented and monitored to ensure efficiency in risk management. 2. Determination of a Systematic Risk Management Process • Risk identification is an analysis to identify risks, causes, internal and external risk factors that hinder achievement of strategic goals. • Risk evaluation and measurement of inherent risk and residual risk is conducted based on the likelihood and impact of risks. • Risk management is made based primarily on the severity of risks. A risk control and mitigation process is clearly defined under a systematic and appropriate risk management guideline to retain risks at an acceptable level and in tune with the risk management policy and strategy of the Bank. • Risk follow-up and report is performed systematically to prevent and control damages in a timely manner, taking into account the suitability and conformity with the Bank’s business strategies.

6564

3. Identification of Risk Appetite The Bank has identified key risk indicators, risk appetite, and risk tolerance benchmarks for each type of risks as guidelines for monitoring and containing risks at an acceptable level. 4. Accountability for Risk Management of Related Work Units Al l departments, off ices and branches are individually responsible for management of risks, whether risks arising within their own unit or risks connected with other units. The Bank has enhanced its staff members’ knowledge and understanding of r isk management principles and procedures by prov id ing tra in ing programs and seminars for employees at all levels in order to create awareness of the importance of risk management in business operations. Moreover, the Bank has produced a risk

management manual and framework for bankwide use, whereas in service development manual, risk management is embedded in new services design and delivery. 5. Incorporating Risk Management into Organizational Culture In 2008, the Bank revised the Executives and Employees’ Code of Ethics and laid down a guideline on the prevention of conflict of interest, serving as an integral part of such Code of Ethics. In addition, the Bank has formulated a guideline for credit extension or investment in businesses involving a conflict of interest to be in conformity with good corporate governance and risk management standards with the ultimate goal of incorporating risk management process into the day-to-day operations and the organizational culture.

• A n n u a l R e p o r t 2 0 0 8

Risk Management Structure The Bank has set up an organizational structure that enables complete monitoring and following up of

Organizational Structure on Risk Management

Audit CommitteeBoard of Executive Directors

Board Level

Administrative Level

Types of Risks

Operational Risk

Reputational Risk

Strategic Risk

Credit Risk

Market Risk

Liquidity Risk

Credit Risk

Risk Management Committee

Asset/Liability Management Committee

Investment Committee

Board of Directors

Strategic Risk Credit Risk

Corporate Credit Committee

risk management and ensures efficient balance of power as shown in the below diagram:

Top Management Committee

6766

The Asset/Liability Management Committee Manage and control risks from asset and liability management, especially liquidity risk and market risk caused by changes in interest rates, prices and exchange rates.

The Investment Committee Manage investment portfolio in accordance with the investment policy and plan and the investment limit approved by the Board of Directors.

The Corporate Credit Committee

Manage and control credit risk under the credit risk management framework. At the operational level, the Office of Risk Management is in charge of the drafting/review of risk management policy, follow-up and evaluation as well as development of risk management tools. The Bank also designates a risk management coordinator or “risk champion” for each department to ensure thorough and efficient risk management bankwide.

The Board of Directors Approve a pol icy and strategy on r isk management and determine a guideline for risk management monitoring to be undertaken by the designated committees and top management.

The Board of Executive Directors Manage r isks as assigned by the Board of Directors, particularly those related to approval authority for credit and investment in equity and debt instruments.

The Audit Committee Oversee the Bank’s risk management monitoring as assigned by the Board of Directors such as examination of the effectiveness and adequacy of risk assessment and internal control system, etc.

The Risk Management Committee Draw up relevant strategies and policies to ensure that risk management is undertaken in line with the pol icy and guidel ine approved by the Board of Directors.

• A n n u a l R e p o r t 2 0 0 8

Risk Management 1. Strategic Risk Strategic risk is risk arising from non-alignment of the strategic and operational plans with the internal and external factors, causing negative impacts on the income, capital or viability of the business. It also includes risk of inability to perform and achieve the specified goal. In 2008, the Bank focused on a proactive strategic plan. Amid the economic and political instability at home and abroad, more rigid regulations on financial institution supervision and stiffer competition from commercial banks and export credit insurance companies, the Bank had to rapidly adjust its strategies with a launching of new activities and projects as follows: • Improvement of export credi t insurance services, e.g. EXIM FLEXI and co-insurance, and expansion of insurance serv ice prov is ion v ia commercial banks to cover their customers. • Investment banking services covering financial advisory, equity investment in domestic and overseas businesses which are promising, but short of funds, and issue of equity instruments to mobilize funds for customers. • Financial services for imports of raw materials, semi-finished products, technical know-how and machinery, etc. to enhance competitiveness of Thai exports. The objective of strategic risk management is to enable the Bank to generate adequate income to ensure sustainable operations to support and promote Thai exports and investments overseas in accordance with its objectives while fulfilling the government’s policy requirements. The annual strategic plans and business plans have been communicated by the Bank

to all units and by department heads to operating staff. Follow-up and evaluation of performance against plans and directives is conducted for further plan review and adjustment in case of failure to meet targets. Strategic Risk Management Guideline and Tools

Major tools of strategic risk management in 2008 included outlining of “Strategic Risk Management Framework”; strategic planning based on the balanced scorecard system which includes SWOT analysis; and application of Economic Value Management (EVM) using Economic Profit (EP) in the Bank’s strategic planning, risk evaluation, preparation of risk map, and identification of key risk indicators, risk appetite and risk tolerance for monitoring and containing risks at an acceptable level. In addition, there will be a follow-up of performance against target through reporting on performance according to the business plans and action plans, etc. These tools have enabled the Bank to atta in the corporate goal , in terms of both commercial results and responsiveness to the government’s national development policy, within the purview of good corporate governance principles and efficient risk management practices. This was evident from the fact that in 2008 the Bank could maintain its capital adequacy ratio (CAR) at an acceptable level of risk appetite and risk tolerance. The Ministry of Finance injected 1.3 billion baht in new funds for the Bank on December 30, 2008, bringing its total paid-up capital to 7.8 billion baht as of December 31, 2008. Details of the CAR and the requirement set out in the Ministerial Regulation, 1995 (B.E. 2538) are tabulated below:

6968

2. Credit Risk Credit r isk is r isk incidental to the Bank’s operations in credit provision, investment, short-term, medium-term and long-term export credit insurance, and investment insurance. Credit risk will likely come from a counterparty or borrower failing to honor the agreed terms or conditions and of the trade partners’ creditworthiness being downgraded, which would materially hurt the Bank’s income and capital funds. The Bank consistently improved its credit risk management policy and process to curb its non-performing loans (NPLs) level. However, due to the global economic crisis, the Bank posted an increase in the NPLs to tota l loans and accrued interest receivables ratio (NPLs ratio) from 5.5% in 2007 to 9.2% in 2008. Credit Risk Management Guideline and Tools • Development of credit risk warning

systems: These include an industry warning sign for use as management guidelines by marketing units and a credit warning sign, which provides customers’

1. Capital fund 7,513 7,513 9,318

2. Risk assets 52,469 52,849 48,763

3. Contingent liabilities under risk insurance 6,977 6,692 6,436

4. Capital adequacy ratio (CAR) (1)/(2) Not less than 8% 14.3% 14.2% 19.1%

5. Ratio of capital to contingent liabilities Not less than 20% 107.7% 112.3% 144.8%

under risk insurance (1)/(3)

Ministerial Requirement Dec 2006 Dec 2007 Dec 2008

Unit : Million Baht

contact history with the Bank and a hot list of specially-monitored customers. This is aimed at enabling marketing and debt management work units to follow up and seek corrective guidelines in advance before these customers turn into NPLs. • Customer risk rating: The Bank has developed its credit rating as a basis for credit consideration. Currently, there are eight credit risk grades for normal loans and three for problem loans. • Credit quality review/annual review and

debt restructuring follow-up: These systems are adopted in accordance with the Credit Policy and in order to review and follow up compliance with credit conditions. • Credit concentration control: Concentration limits on the Bank’s lending are specified for lending to a single customer, a group of customers, a single industry and a single country. For insurance service, concentration limit is set per buyer and group of buyers. • Stress test: A stress test is conducted on a yearly basis under different circumstances. The Bank could maintain the CAR at not less than 8.5% as required by the Bank of Thailand.

• A n n u a l R e p o r t 2 0 0 8

Key credit risk management measures in 2008 were improvement of loan administration process to ensure more efficiency and closer following-up of customers’ debt service abil ity and credit risk, adoption of EXIM Credit Fast Track to standardize and enhance efficiency of the approval, review and renewal of work ing capi ta l fac i l i t ies for smal l customers, and application of risk-based pricing to enable setting of interest rates that match borrowers’ risks and the Bank’s cost of lending. 3. Market Risk

Market risk consists of three types: interest rate risk, foreign exchange rate risk, and price risk. All have direct impact on the Bank’s income and the value of its assets, liabilities and relevant off-balance-sheet items. Market Risk Management Guideline and Tools

• Interest rate risk is the risk that changes in interest rates will adversely affect the Bank’s income. The Bank’s interest st ructure is speci f ied in accordance with the nature of its assets and liabilities, while the interest rate movements are monitored consistently. The Bank manages interest rate risk using tools which are suitable for the complexity of its business operations such as maturity gap analysis, interest rate sensitivity analysis to calculate net interest income (NII) and economic value of equities (EVE), etc. to enable appropriate asset and liability management in each period in conformity with the criteria prescribed by the Board of Directors. Moreover, in 2008, the Bank expanded its scope of funding activities to be more aligned with

commercial banks’ cost of borrowing, using fixed deposit rates as a benchmark. Interest rate swaps were also used to manage mismatch between asset and liability. • Foreign exchange (FX) rate risk is caused by impact on the income and capital funds from the exchange rate fluctuations arising from foreign exchange transactions or foreign currency assets or liabilities. The Bank has a policy to hedge against foreign exchange risk so as to maintain the balance of its assets, liabilities and off-balance-sheet items. The key tools of foreign exchange rate risk management include criteria of the end-of-day FX position, both in individual currency and in combined currencies, determination of Stop Loss Level for proprietary FX trading of all currencies, and tools for gauging maximum potential loss from foreign exchange rate risk. With the effective foreign exchange rate risk management, the Bank is able to maintain its FX position according to the requirement. • Price risk derives when the income and capital funds are affected by instrument price volatility in the Bank’s investment portfolio. The Bank has invested mostly in debt instruments in baht and foreign currencies and equity instruments, rated at the investment grade at minimum. The Investment Committee is responsible for portfolio management and control within the investment l imit and in accordance with the investment criteria approved by the Board of Directors. In 2008, the Bank had a policy to invest in bonds with high liquidity and low risk. In 2008, the Bank made fore ign exchange transactions and investments in financial instruments to optimize its capital and liquidity management. However, to contain market risk at an acceptable level, the Bank has introduced another tool, “Market Risk Management Framework,” according to the Bank

7170

of Thailand’s guideline for mitigating market risk and ensuring that its risk management matches the complexity of its business transactions. 4. Liquidity Risk Liquidity risk refers to risk of cash flow deficiency for credit provision, additional investment, deposit repayment or loan repayment. In some cases, the Bank managed to procure funds to meet cash demand but at a h igher cost . L iqu id i ty r isk management helps mitigate severe liquidity problem which may lead to higher cost of emergency borrowing from other sources or loss from disposal of assets to meet the fund requirements. The Bank has mapped out the “Liquidity Risk Management Framework” as a bas is for the development of a liquidity risk hedging environment. The Bank has a lso determined r isk l imits for maintaining liquid assets. The Investment Committee and the ALCO are responsible for oversight of the Treasury Department, which manages the Bank’s liquidity and short-term and long-term funding from both the domestic and overseas money markets.

Liquidity Risk Management Guideline and Tools In 2008, the Bank managed liquidity risk by comparing its immediate liquidity and available liquidity from procurable funding sources with the projected net cash flows to maintain adequate liquidity excess for the requirement in both individual currency and combined currencies. At year-end 2008, the Bank’s liquidity risk and risk tolerance were at an acceptable level.

5. Operational Risk Operational risk is associated with damages from lacking or inadequacy of good corporate governance and inefficient control in relation to internal operation process, personnel, work systems or external factors. It also includes risk of damages from non-compliance with the rules and regulations of the Bank and the laws, rules and regulat ions of the supervisory authorities that eventually poses adverse impacts on the income and capital funds of the Bank. The Bank recognizes the importance of operat iona l r isk , part icu lar ly in the aspect of compliance with relevant laws and regulations. The Compliance Division, Office of Risk Management was set up to monitor and ensure the Bank’s compliance with the laws, rules, regulations, policies, and requirements of relevant authorities. In addition, the Bank has formulated the “Operat iona l Risk Management Framework” as a guideline for hedging against operational risk and set out the definitions and types of operational risk. The Bank has established operational procedures and workflows under a comprehensive guideline for the supervision of rules compliance and also identified key risk indicators, risk appetite and risk tolerance as a basis for monitoring and controlling operational risk at an acceptable level. Operational Risk Management Guideline and Tools

Here are the key tools adopted for operational risk hedging: • Control self assessment: All units are required to identify risks associated with their work process in order to evaluate the existing risk control

• A n n u a l R e p o r t 2 0 0 8

and map out an improvement guideline. A review is made on a yearly basis. • Loss data collection: This is a system to compile information on damage already occurring (loss data) and potential damage (near-misses data) of all units. The compilation of these data, commencing September 2005 up to present, is used to boost efficiency of the work process. At present, these two types of damages caused by operational risk have declined significantly, which demonstrates a greater degree of the staff members’ risk awareness in their operations. • Business continuity management: EXIM Thai land has developed a business cont inu i ty management plan and has conducted a testing and review of disaster recovery plan on an annual basis to cushion any damage from a critical condition arising from uncontrollable external factors so as to ensure the Bank’s uninterrupted business operations. 6. Reputational Risk

Reputational risk means any incident or situation associated with the Bank’s operations that may cause its personnel and other parties concerned with the Bank’s business such as customers, counterparties, related agencies, the media, independent organizations as well as the general public to have negative perception on the Bank, whether it is true or not, to the extent that it adversely affects the financial position, business viability, credibility and reason to exist of the Bank.

Reputational Risk Management Guideline and Tools

In 2008, the Bank managed its reputational risk in many respects such as conducting staff satisfaction survey, public image survey as well as disseminating information through press release, photo news, the monthly EXIM E-NEWS magazine, and its website, www.exim.go.th, which allows the public to directly access detailed and updated information about the Bank. For key issues of public concern, the Bank organized press conferences to communicate the facts and respond to any enquiries in a clear and timely manner. Furthermore, the Bank focused on transparent dissemination of information, especially the issues of publ ic interest and directly connected with its reputational risk, and also on its cooperation with government agencies in investigating related facts. These actions enabled the Bank to retain a corporate image as a transparent and credible organization. Basel II Compliance EXIM Thailand has made preparations to maintain its capital funds in line with the standards applicable in the banking sector both at home and abroad, i.e. the Bank of Thailand’s guideline on maintaining of capital funds for financial institutions in Thailand, which has been adapted from the International Convergence of Capital Measurement and Capital Standards (Basel II) of the Basel Committee on Bank ing Superv is ion , Bank for In ternat iona l Set t lements . The Bank made i ts compl iance consideration based on its business size and nature. The Bank has pre l iminar i l y prepared for the

7372

calculation of capital funds as set out in Pillar I of Base l I I per ta in ing to the min imum cap i ta l requirement, comprising credit risk assets, market risk assets, and operational r isk assets. It has

undertaken capital requirement calculat ion and developed risk factor computation for the maintaining of the minimum capital requirement under Basel II guideline.

• A n n u a l R e p o r t 2 0 0 8

Report of the Board of Directors’ Responsibility

for Financial Reports

The Board of Directors has considered the financial statements of the Bank and financial information in the Annual Report, and is of the opinion that the Bank’s financial statements have been prepared in accordance with generally accepted accounting principles, with appropriate accounting policies applied on a consistent basis. Where judgment and estimates were required, they were made with careful and reasonable consideration, and adequate disclosures of material information have been made in the notes to the financial statements. The Board of Directors has put in place and maintained appropriate and effective risk management and internal control systems designed to provide reasonable assurance that accounting records have been properly and adequately maintained to safeguard assets and prevent fraud and other irregularities with material implications. The Board of Directors also appointed the Audit Committee, which comprises directors who are independent and responsible for the quality of the Bank’s financial reports and internal control system. Opinion of the Audit Committee on this matter is presented in the Report of the Audit Committee published in this annual report. The Board of Directors is of the opinion that the Bank’s overall internal control system is satisfactory and can reasonably assure the reliability of the Bank’s financial statements for the year ended December 31, 2008. (Mr. Narongchai Akrasanee) (Mr. Apichai Boontherawara) Chairman President

7574

Report of the Audit Committee

The Audit Committee is composed of three board members who are independent, namely, 1. Mrs. Atchana Waiquamdee Audit Committee Chairman 2. Mr. Apichart Jongskul Audit Committee Member 3. Mr. Arttachai Burakamkovit Audit Committee Member Mr. Arttachai Burakamkovit was appointed Audit Committee Member by the resolution of the Board of Directors meeting no. 12/2008 on December 25, 2008, to replace Miss Orajit Singkalavanich who has been appointed member of the Board of Executive Directors. The Audit Committee has independently performed the duty and responsibility as prescribed in the Audit Committee Charter. In 2008, the Audit Committee convened four meetings to consider crucial issues as follows: • Reviewed the quarterly and yearly financial statements jointly with the external auditor and the Bank’s concerned executives before submitting to the Board of Directors. The said review was focused on accounting policy, accounting standards, information disclosures, notes to the financial statements, and observations of the external auditor in performing the audit or reviewing the financial statements. • Considered in conjunction with the Bank’s concerned executives and internal auditors the adequacy and efficiency of risk management and internal control processes including risk management performance, covering strategic risk, credit risk, market risk, liquidity risk, operational risk and compliance risk, and the results of internal control evaluation in accordance with the Regulation of the State Audit Commission regarding Internal Control Standard, 2001 (B.E. 2544). • Considered and approved the Bank’s internal audit plan, strategy, key performance indicators and handbook as well as the audit charter, and also acknowledged the audit report and followed up the corrective actions according to the recommendations in the audit report. • Followed up and monitored the compliance with related laws, rules and regulations as well as ethics of the Bank including transactions that may pose a conflict of interest. • Reviewed the Audit Committee Charter and conducted a control self-assessment for submission to the Board of Directors.

• A n n u a l R e p o r t 2 0 0 8

In all its activities conducted throughout 2008, the Audit Committee has performed the duty independently without restrictions on access to information. The Audit Committee agrees with the external auditor that the Bank’s financial statements and material information disclosures are correct and conform to the generally accepted accounting standards. The Bank’s risk management and internal control are considered suitable for its business and the Bank has properly complied with the relevant laws, rules and regulations. (Mrs. Atchana Waiquamdee) Audit Committee Chairman

7776

Auditor’s Report

To : Minister of Finance The Office of the Auditor General has audited the balance sheets, in which the equity method is applied to investment and the Bank’s balance sheets of the Export-Import Bank of Thailand as at December 31, 2008 and 2007, and the related statements of income, in which the equity method is applied to investment and the Bank’s statements of income, changes in capital and cash flows for the years then ended. These financial statements are the responsibility of the Bank’s Management as to their correctness and completeness of the presentation. The responsibility of the Office of the Auditor General is to express an opinion on these financial statements based on our audits. The Office of the Auditor General conducted the audits in accordance with generally accepted auditing standards. Those standards require that the Office of the Auditor General plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall financial statements presentation. The Office of the Auditor General believes that the audits provide a reasonable basis for the opinion. In the opinion of the Office of the Auditor General, the financial statements in which the equity method is applied to investment and the Bank’s financial statements referred to above present fairly, in all material respects, the financial position of the Export-Import Bank of Thailand as at December 31, 2008 and 2007, and the results of operations, the changes in capital, and the cash flows for the years then ended in accordance with generally accepted accounting principles. (Signed) Wibulphen Hitaphan (Signed) Sunan Wongmek (Ms. Wibulphen Hitaphan) (Ms. Sunan Wongmek) Senior Audit Specialist Level 9 Auditor-in-charge Office of the Auditor General February 20, 2009

• A n n u a l R e p o r t 2 0 0 8

Financial Statements and Notes to Financial Statements Balance Sheets As at December 31, 2008 and 2007 Unit : Baht

The notes to the Financial Statements are an integral part of these statements.

Cash 12,959,385.04 11,001,837.80 12,959,385.04 11,001,837.80

Interbank and money market items 4.1

Domestic items

Interest bearing 3,873,882,767.21 1,332,810,126.08 3,873,882,767.21 1,332,810,126.08

Non-interest bearing 67,525,096.15 354,322,963.23 67,525,096.15 354,322,963.23

Foreign items

Interest bearing 1,150,530,663.12 3,516,033,922.56 1,150,530,663.12 3,516,033,922.56

Non-interest bearing 383,962,129.31 336,571,235.78 383,962,129.31 336,571,235.78

Total interbank and money market items-net 5,475,900,655.79 5,539,738,247.65 5,475,900,655.79 5,539,738,247.65

Investments 3.4 4.2

Current investments-net 1,727,938,291.80 1,563,962,604.76 1,727,938,291.80 1,563,962,604.76

Long-term investments-net 2,515,672,678.72 3,379,133,241.99 2,515,672,678.72 3,379,133,241.99

Investments in associated company-net 3,916,649.59 - 4,286,500.00 -

Total investments-net 4,247,527,620.11 4,943,095,846.75 4,247,897,470.52 4,943,095,846.75

Loans and accrued interest receivables 4.3

Loans 3.5 3.8 50,747,772,717.97 52,751,798,136.63 50,747,772,717.97 52,751,798,136.63

Accrued interest receivables 416,928,699.89 835,656,630.27 416,928,699.89 835,656,630.27

Total loans and accrued interest receivables 51,164,701,417.86 53,587,454,766.90 51,164,701,417.86 53,587,454,766.90

Less Allowance for doubtful accounts 3.6 4.4 2,877,980,150.54 2,515,098,831.63 2,877,980,150.54 2,515,098,831.63

Less Revaluation allowance for debt restructuring 3.7 4.5 169,471,105.05 803,416,453.90 169,471,105.05 803,416,453.90

Total loans and accrued interest receivables-net 48,117,250,162.27 50,268,939,481.37 48,117,250,162.27 50,268,939,481.37

Loans under transfer-net 4.3.6 - 1,638,731,205.22 - 1,638,731,205.22

Properties foreclosed-net 3.13 4.6 974,489,917.62 891,294,134.37 974,489,917.62 891,294,134.37

Premises and equipment-net 3.12 4.7 928,671,744.16 963,432,254.26 928,671,744.16 963,432,254.26

Derivative revaluation 3.11 4.16 15,292,928.52 1,069,634,763.07 15,292,928.52 1,069,634,763.07

Accrued interest receivables not related to loans 42,638,415.69 35,192,505.41 42,638,415.69 35,192,505.41

Prepaid expenses 6,073,370.01 6,618,283.33 6,073,370.01 6,618,283.33

Leasehold premises and improvements 6,627,383.48 9,487,309.16 6,627,383.48 9,487,309.16

Other assets-net 4.8 25,136,189.29 13,729,576.37 25,136,189.29 13,729,576.37

Total assets 59,852,567,771.98 65,390,895,444.76 59,852,937,622.39 65,390,895,444.76

Financial statements in which The Bank’s

Notes

the equity method Financial statements

is applied to investment

2008 2007 2008 2007

Assets

7978

Balance Sheets (Continued) As at December 31, 2008 and 2007 Unit : Baht

The notes to the Financial Statements are an integral part of these statements.

Deposits 4.9

Deposits in baht 3,973,224,796.11 3,887,373,659.66 3,973,224,796.11 3,887,373,659.66

Deposits in foreign currencies 327,585,962.15 768,521,442.51 327,585,962.15 768,521,442.51

Total deposits 4,300,810,758.26 4,655,895,102.17 4,300,810,758.26 4,655,895,102.17

Interbank and money market items 4.10

Domestic items

Interest bearing 10,687,246,289.17 7,243,755,699.33 10,687,246,289.17 7,243,755,699.33

Non-interest bearing 24,294,941.61 16,617,103.30 24,294,941.61 16,617,103.30

Foreign items

Interest bearing 1,021,011,186.72 397,531,237.49 1,021,011,186.72 397,531,237.49

Total interbank and money market items 11,732,552,417.50 7,657,904,040.12 11,732,552,417.50 7,657,904,040.12

Liability payable on demand 12,136,940.26 15,684,256.86 12,136,940.26 15,684,256.86

Borrowings 4.11

Short-term borrowings 5,500,000,000.00 18,650,000,000.00 5,500,000,000.00 18,650,000,000.00

Long-term borrowings 27,621,981,000.00 25,061,172,000.00 27,621,981,000.00 25,061,172,000.00

Total borrowings 33,121,981,000.00 43,711,172,000.00 33,121,981,000.00 43,711,172,000.00

Accrued interest payables 483,051,859.29 566,627,462.02 483,051,859.29 566,627,462.02

Advance Deposits 4.12 4,965,248.99 518,107,905.84 4,965,248.99 518,107,905.84

Export credit insurance reserve 236,359,155.04 210,227,738.67 236,359,155.04 210,227,738.67

Other liabilities 4.13 130,278,571.66 101,156,082.29 130,278,571.66 101,156,082.29

Total liabilities 50,022,135,951.00 57,436,774,587.97 50,022,135,951.00 57,436,774,587.97

Capital

Capital 4.14 7,800,000,000.00 6,500,000,000.00 7,800,000,000.00 6,500,000,000.00

Paid-up capital 7,800,000,000.00 6,500,000,000.00 7,800,000,000.00 6,500,000,000.00

Hedging reserve 3.11 209,020,798.25 (85,408,548.74) 209,020,798.25 (85,408,548.74)

Revaluation surplus on investments 3.4 4.2.4 102,515,312.11 21,481,530.47 102,515,312.11 21,481,530.47

Retained earnings

Appropriated

Legal reserve 2,478,353,886.85 2,223,353,886.85 2,478,353,886.85 2,223,353,886.85

Unappropriated (759,458,176.23) (705,306,011.79) (759,088,325.82) (705,306,011.79)

Total capital 9,830,431,820.98 7,954,120,856.79 9,830,801,671.39 7,954,120,856.79

Total liabilities and capital 59,852,567,771.98 65,390,895,444.76 59,852,937,622.39 65,390,895,444.76

Liabilities and Capital

Financial statements in which The Bank’s

Notes

the equity method Financial statements

is applied to investment

2008 2007 2008 2007

• A n n u a l R e p o r t 2 0 0 8

Balance Sheets (Continued) As at December 31, 2008 and 2007 Unit : Baht

The notes to the Financial Statements are an integral part of these statements.

3.14 4.15

Liabilities under unmatured import bills 189,930,462.55 268,983,917.25 189,930,462.55 268,983,917.25

Letters of credit 386,482,909.69 895,500,902.08 386,482,909.69 895,500,902.08

Export bills insured 8,358,203,893.23 6,901,874,320.89 8,358,203,893.23 6,901,874,320.89

Other contingencies 58,496,557,698.16 70,041,172,419.29 58,496,557,698.16 70,041,172,419.29

Off-Balance Sheet

Items-Contingencies

(Mr. Narongchai Akrasanee) (Mr. Apichai Boontherawara) Chairman President

Financial statements in which The Bank’s

Notes

the equity method Financial statements

is applied to investment

2008 2007 2008 2007

8180

Statements of Income For the Years Ended December 31, 2008 and 2007 Unit : Baht

Interest and dividend income 3.2

Loans 3.9 2,790,134,903.75 3,324,608,767.68 2,790,134,903.75 3,324,608,767.68

Interbank and money market items 280,310,321.18 360,631,158.72 280,310,321.18 360,631,158.72

Investments 166,196,321.98 305,500,791.23 166,196,321.98 305,500,791.23

Total interest and dividend income 3,236,641,546.91 3,990,740,717.63 3,236,641,546.91 3,990,740,717.63

Interest expenses 3.3

Deposits 46,542,470.86 145,683,578.97 46,542,470.86 145,683,578.97

Interbank and money market items 404,108,412.76 283,055,859.21 404,108,412.76 283,055,859.21

Short-term borrowings 391,490,362.34 652,013,502.34 391,490,362.34 652,013,502.34

Long-term borrowings 1,093,247,415.64 1,443,504,511.19 1,093,247,415.64 1,443,504,511.19

Total interest expenses 1,935,388,661.60 2,524,257,451.71 1,935,388,661.60 2,524,257,451.71

Net income from interest and dividend 1,301,252,885.31 1,466,483,265.92 1,301,252,885.31 1,466,483,265.92

Bad debt and doubtful accounts 3.6 1,412,993,154.33 1,245,900,780.74 1,412,993,154.33 1,245,900,780.74

Loss on debt restructuring 3.7 (251,738,872.22) (405,710,767.70) (251,738,872.22) (405,710,767.70)

Net income from interest and dividend after bad debt

and doubtful accounts and loss on debt restructuring 139,998,603.20 626,293,252.88 139,998,603.20 626,293,252.88

Non-interest income

Gain on investments 16,269,774.99 55,991,746.08 16,269,774.99 55,991,746.08

Share of loss from investments on equity method (369,850.41) - - -

Fees and service income 234,620,256.90 227,547,643.77 234,620,256.90 227,547,643.77

Export credit insurance income 132,705,307.82 146,937,227.25 132,705,307.82 146,937,227.25

Gain on exchanges 3.10 3.11 193,273,097.30 179,067,061.97 193,273,097.30 179,067,061.97

Gain on sale of properties foreclosed 41,288,619.77 5,894,186.65 41,288,619.77 5,894,186.65

Bad debt recovered 95,129.56 54,671.63 95,129.56 54,671.63

Written-off debt recovered 540,189.78 26,773,692.72 540,189.78 26,773,692.72

Other income 28,116,535.76 30,642,059.77 28,116,535.76 30,642,059.77

Total non-interest income 646,539,061.47 672,908,289.84 646,908,911.88 672,908,289.84

Non-interest expenses

Personnel expenses 471,321,456.57 448,792,469.91 471,321,456.57 448,792,469.91

Premises and equipment expenses 92,800,576.64 95,620,280.88 92,800,576.64 95,620,280.88

Taxes and duties 34,579.43 134,629.89 34,579.43 134,629.89

Fees and service expenses 17,179,154.69 36,799,181.44 17,179,154.69 36,799,181.44

Expenses on export credit insurance 56,995,080.40 27,718,610.75 56,995,080.40 27,718,610.75

Directors’ remuneration 3,663,388.55 2,642,351.60 3,663,388.55 2,642,351.60

Loss on impairment of properties foreclosed (130,012,358.21) 106,534,643.03 (130,012,358.21) 106,534,643.03

Other expenses 73,707,951.04 75,429,748.01 73,707,951.04 75,429,748.01

Total non-interest expenses 585,689,829.11 793,671,915.51 585,689,829.11 793,671,915.51

Net income 200,847,835.56 505,529,627.21 201,217,685.97 505,529,627.21

The notes to the Financial Statements are an integral part of these statements.

Financial statements in which The Bank’s

Notes

the equity method Financial statements

is applied to investment

2008 2007 2008 2007

• A n n u a l R e p o r t 2 0 0 8

Statements of Changes in Capital For the Years Ended December 31, 2008 and 2007 Financial Statements in which the equity method is applied to investment Unit : Baht

The notes to the Financial Statements are an integral part of these statements.

Beginning balance as at

January 1, 2007 6,500,000,000.00 (349,722,283.98) 3,272,164.41 2,223,353,886.85 (1,210,835,639.00) 7,166,068,128.28

Hedging reserve - 264,313,735.24 - - - 264,313,735.24

Revaluation surplus on

investments - - 18,209,366.06 - - 18,209,366.06

Unrecognized items in

income statements - 264,313,735.24 18,209,366.06 - - 282,523,101.30

Increase from the

Ministry of Finance - - - - - -

Legal reserve - - - - - -

Remittance to the

Ministry of Finance - - - - - -

Net income - - - - 505,529,627.21 505,529,627.21

Ending balance as at

December 31, 2007 6,500,000,000.00 (85,408,548.74) 21,481,530.47 2,223,353,886.85 (705,306,011.79) 7,954,120,856.79

Beginning balance as at

January 1, 2008 6,500,000,000.00 (85,408,548.74) 21,481,530.47 2,223,353,886.85 (705,306,011.79) 7,954,120,856.79

Hedging reserve - 294,429,346.99 - - - 294,429,346.99

Revaluation surplus on

investments - - 81,033,781.64 - - 81,033,781.64

Unrecognized items in

income statements - 294,429,346.99 81,033,781.64 - - 375,463,128.63

Increase from the

Ministry of Finance 1,300,000,000.00 - - - - 1,300,000,000.00

Legal reserve - - - 255,000,000.00 (255,000,000.00) -

Remittance to the

Ministry of Finance - - - - - -

Net income - - - - 200,847,835.56 200,847,835.56

Ending balance as at

December 31, 2008 7,800,000,000.00 209,020,798.25 102,515,312.11 2,478,353,886.85 (759,458,176.23) 9,830,431,820.98

Revaluation Appropriated Unappropriated

Capital Hedging

Surplus on Retained Retained Total

Reserve

Investments Earnings Earnings

8382

Statements of Changes in Capital For the Years Ended December 31, 2008 and 2007 The Bank’s Financial Statements Unit : Baht

Revaluation Appropriated Unappropriated

Capital Hedging

Surplus on Retained Retained Total

Reserve

Investments Earnings Earnings

The notes to the Financial Statements are an integral part of these statements.

Beginning balance as at

January 1, 2007

Hedging reserve

Revaluation surplus on

investments

Unrecognized items in

income statements

Increase from the

Ministry of Finance

Legal reserve

Remittance to the

Ministry of Finance

Net income

Ending balance as at

December 31, 2007

Beginning balance as at

January 1, 2008

Hedging reserve

Revaluation surplus on

investments

Unrecognized items in

income statements

Increase from the

Ministry of Finance

Legal reserve

Remittance to the

Ministry of Finance

Net income

Ending balance as at

December 31, 2008

6,500,000,000.00 (349,722,283.98) 3,272,164.41 2,223,353,886.85 (1,210,835,639.00) 7,166,068,128.28

- 264,313,735.24 - - - 264,313,735.24

- - 18,209,366.06 - - 18,209,366.06

- 264,313,735.24 18,209,366.06 - - 282,523,101.30

- - - - - -

- - - - - -

- - - - - -

- - - - 505,529,627.21 505,529,627.21

6,500,000,000.00 (85,408,548.74) 21,481,530.47 2,223,353,886.85 (705,306,011.79) 7,954,120,856.79

6,500,000,000.00 (85,408,548.74) 21,481,530.47 2,223,353,886.85 (705,306,011.79) 7,954,120,856.79

- 294,429,346.99 - - - 294,429,346.99

- - 81,033,781.64 - - 81,033,781.64

- 294,429,346.99 81,033,781.64 - - 375,463,128.63

1,300,000,000.00 - - - - 1,300,000,000.00

- - - 255,000,000.00 (255,000,000.00) -

- - - - - -

- - - - 201,217,685.97 201,217,685.97

7,800,000,000.00 209,020,798.25 102,515,312.11 2,478,353,886.85 (759,088,325.82) 9,830,801,671.39

• A n n u a l R e p o r t 2 0 0 8

Statements of Cash Flows For the Years Ended December 31, 2008 and 2007 Unit : Baht

The notes to the Financial Statements are an integral part of these statements.

Cash flows from operating activities

Net income 200,847,835.56 505,529,627.21 201,217,685.97 505,529,627.21

Adjustments to reconcile net income to net cash

from operating activities

Depreciation and amortization 73,490,951.19 66,919,453.49 73,490,951.19 66,919,453.49

Bad debt and doubtful accounts 1,348,838,930.32 1,345,490,607.89 1,348,838,930.32 1,345,490,607.89

Loss on debt restructuring (reversal) (251,738,872.22) (405,710,767.70) (251,738,872.22) (405,710,767.70)

Written-off debt recovered (reversal) (412,158.23) - (412,158.23) -

(Gain) on disposal of assets (800,490.83) (5,449,726.60) (800,490.83) (5,449,726.60)

(Gain) on sale of properties foreclosed (41,288,619.77) (5,894,186.65) (41,288,619.77) (5,894,186.65)

Loss on impairment of properties foreclosed (reversal) (130,012,358.21) 106,534,643.03 (130,012,358.21) 106,534,643.03

(Gain) loss on exchanges 575,124,564.63 (557,130,482.92) 575,124,564.63 (557,130,482.92)

Derivative revaluation 743,450,371.68 249,643,338.92 743,450,371.68 249,643,338.92

(Gain) on sale of investments in securities (16,269,774.99) (55,991,746.08) (16,269,774.99) (55,991,746.08)

Share of loss from investments on equity method 369,850.41 - - -

Deferred (discount) premium on investment-paid (176,289,248.37) (366,143,075.74) (176,289,248.37) (366,143,075.74)

Provision for contingent liabilities 34,916,548.38 (185,879,076.00) 34,916,548.38 (185,879,076.00)

Loss on claims and provision for claims against

export credit insurance 38,449,748.17 21,309,843.77 38,449,748.17 21,309,843.77

(Increase) in accrued income (13,092.73) (60,147.31) (13,092.73) (60,147.31)

Decrease in prepaid expenses 679,115.56 940,756.08 679,115.56 940,756.08

Increase (decrease) in other accrued expenses (7,927,720.33) 15,345,651.63 (7,927,720.33) 15,345,651.63

2,391,415,580.22 729,454,713.02 2,391,415,580.22 729,454,713.02

Net income from interest and dividend (1,301,252,885.31) (1,466,483,265.92) (1,301,252,885.31) (1,466,483,265.92)

Proceeds from interest and dividend 3,603,456,750.74 4,095,470,909.71 3,603,456,750.74 4,095,470,909.71

Interest paid (2,022,426,100.00) (2,703,930,027.63) (2,022,426,100.00) (2,703,930,027.63)

Income from operations before changes in operating assets

and liabilities 2,671,193,345.65 654,512,329.18 2,671,193,345.65 654,512,329.18

(Increase) decrease in operating assets

Interbank and money market items 61,214,140.24 2,189,185,456.87 61,214,140.24 2,189,185,456.87

Loans 1,488,011,182.57 (2,877,909,273.97) 1,488,011,182.57 (2,877,909,273.97)

Loans for sale-net 1,638,951,949.48 - 1,638,951,949.48 -

Properties foreclosed 91,835,194.73 (95,578,771.49) 91,835,194.73 (95,578,771.49)

Other assets (39,588,886.12) (24,134,539.32) (39,588,886.12) (24,134,539.32)

Financial statements in which The Bank’s

the equity method Financial statements

is applied to investment

2008 2007 2008 2007

8584

Statements of Cash Flows (Continued) For the Years Ended December 31, 2008 and 2007 Unit : Baht

Cash flows from operating activities

Increase (decrease) in operating liabilities

Deposits (356,037,837.01) (1,227,313,544.03) (356,037,837.01) (1,227,313,544.03)

Interbank and money market items 3,555,811,854.12 1,521,898,184.71 3,555,811,854.12 1,521,898,184.71

Liability payable on demand (3,547,316.60) (877,377.29) (3,547,316.60) (877,377.29)

Short-term borrowings 2,500,000,000.00 - 2,500,000,000.00 -

Other liabilities (533,426,412.74) 491,639,011.43 (533,426,412.74) 491,639,011.43

Net cash provided by operating activities 11,074,417,214.32 631,421,476.09 11,074,417,214.32 631,421,476.09

Cash flows from investing activities

(Increase) in investments in securities (1,192,001,238.12) (9,462,742,977.18) (1,192,001,238.12) (9,462,742,977.18)

Proceeds from sale of investments before due date 2,268,009,961.62 11,533,073,798.14 2,268,009,961.62 11,533,073,798.14

Purchase of premises and equipment (32,358,532.38) (79,183,424.66) (32,358,532.38) (79,183,424.66)

Proceeds from sale of premises and equipment 818,889.00 5,535,060.00 818,889.00 5,535,060.00

Net cash provided by investing activities 1,044,469,080.12 1,996,682,456.30 1,044,469,080.12 1,996,682,456.30

Cash flows from financing activities

(Decrease) in long-term borrowings (13,416,928,747.20) (2,620,518,000.00) (13,416,928,747.20) (2,620,518,000.00)

Increase in capital 1,300,000,000.00 - 1,300,000,000.00 -

Net cash (used in) financing activities (12,116,928,747.20) (2,620,518,000.00) (12,116,928,747.20) (2,620,518,000.00)

Net increase in cash and cash equivalents 1,957,547.24 7,585,932.39 1,957,547.24 7,585,932.39

Cash and cash equivalents at the beginning of the period 11,001,837.80 3,415,905.41 11,001,837.80 3,415,905.41

Cash and cash equivalents at the end of the period 12,959,385.04 11,001,837.80 12,959,385.04 11,001,837.80

The notes to the Financial Statements are an integral part of these statements.

Financial statements in which The Bank’s

the equity method Financial statements

is applied to investment

2008 2007 2008 2007

• A n n u a l R e p o r t 2 0 0 8

Notes to Financial Statements For the Years Ended December 31, 2008 and 2007

1. General Information Export-Import Bank of Thailand (or “the Bank”) was established by the Export-Import Bank of Thailand Act, 1993 (B.E. 2536), with the objective to provide financial supports for exports, imports and investments related to the development of the Thai economy. Its services include: - export financing services provided through commercial banks; - short-term and long-term credits provided directly to exporters; - medium-term credits for export business expansion; - short -term and medium-term credits to foreign banks to finance goods imports from Thailand; - credit and equity financing to support Thai investments overseas; - export credit insurance services to Thai exporters; - credi ts for overseas pro jects y ie ld ing economic returns to Thailand; and - investment insurance services for overseas investments of Thai investors who have received credits from the Bank. The Bank’s Head Office is located at 1193 Phaholyothin Road, Samsen Nai, Phayathai, Bangkok 10400. 2. Basis of Preparation of Financial Statements The f inancia l statements are prepared in conformity with general ly accepted accounting principles as prescribed in the Accounting Act, 2000 (B.E. 2543), and presented in accordance with the Notification issued by the Bank of Thailand prescribing

the forms of balance sheets and statements of profit and loss for commercial banks dated May 10, 2001. In 2008, the Bank applied the new and revised accounting standards as follows: TAS 25 (Revised 2007) Cash Flow Statements TAS 35 (Revised 2007) Presentation of Financial Statements TAS 39 (Revised 2007) Accounting Policies, Changes in Accounting Estimates and Errors TAS 44 (Revised 2007) Consolidated and Separate Financial Statements TAS 51 Intangible Assets The application of the above new and revised accounting standards has no material effects on the financial statements of the Bank. The financial statements have been translated into English for the convenience of the readers. 3. Summary of Significant Accounting Policies 3.1 Cash and Cash Equivalents Cash and cash equivalents represent cash in hand and cash items in process of collection. 3.2 Recognition of Interest Income Interest income is recognized on a time proportion basis that reflects the effective yield, while interest income on loans overdue more than three months is recorded on a cash basis. 3.3 Recognition of Interest Expense Interest expense is recognized on an accrual basis. 3.4 Investments Investments in marketable debt or equity securities classified as investments for trading are stated at fair value. Gains or losses arising from their revaluation are presented in the statements of income.

8786

Investments in marketable debt or equity securities classified as available-for-sale investments are stated at fair value. Gains or losses arising from their revaluation are separately stated in the Capital item and are charged to the statements of income when such investments are disposed of. Investments in held- to-matur i ty debt securities are stated at amortized cost and are amortized by using the effective interest rate method throughout their remaining maturity. Investments in non-marketable equity securities classified as general investments are stated at cost net of allowance for decrease in investment value caused by impairment. Loss on impairment is charged to the statements of income. Investments in associated companies presented in the Bank’s separate financial statements are accounted for by the cost method. 3.5 Loans Loans, except bank overdrafts, are reported at the principal amounts. Unearned discounts received in advance are reported in other l iabi l i t ies and recognized as revenue over the period of such loans. 3.6 Allowance for Doubtful Accounts The Bank sets aside the allowance for doubtful accounts and charges it as expense in the doubtful accounts item. The allowance amount is determined based on the outstanding loan amount and the financial status, collateral and repayment ability of the individual borrowers, including borrowers undergoing debt restructuring. The Bank’s allowance for doubtfu l accounts is made based on the classification of loans and customers’ repayment ability as well as prudent banking as prescribed in the Bank’s delinquency classification rules which are in line with the rules promulgated by the Bank of Thailand under the Notification on Worthless or

Irrecoverable Assets and Doubtful Assets that May Be Worthless or Irrecoverable of Commercial Banks dated December 7, 2006. The Bank thereby set the allowance for doubtful accounts at the rate of 100% of the difference between the book value of loans and the present value of expected cash flow from the debtor or the present value of expected cash flow from the sale of collateral. The Bank does not provide allowance for the loans extended to commercial banks, financial institutions or individual persons or corporate entities which are loans extended in accordance with the government’s policy or directive or the cabinet resolution which are covered against losses under Section 23 of the Export-Import Bank of Thailand Act, 1993 (B.E. 2536), and loans which are covered by the export insurance. Bad debt written off is deducted from the allowance amount for doubtful accounts and the bad debt recovered is recognized as income. 3.7 Troubled Debt Restructuring The Bank analyzes borrowers’ financial and business status and cash flow projections based on reasonable criteria together with supporting evidence that borrowers are able to honor the debt restructuring agreements. In the case of the Bank receiving debt repayment by a transfer of assets or ownership interests, the fair value is adopted. In the case of adjustment to the repayment terms and conditions, the Bank recalculates the fair value of the debt by determining the present value of future expected cash flows in accordance with the adjusted repayment conditions using the Bank’s regular interest rate preva i l ing on the debt restructuring date as the discount rate. The difference between the new fair value and the debt amount is

• A n n u a l R e p o r t 2 0 0 8

recorded as allowances for revaluation adjustment from debt restructuring and is recognized in the statement of income based on the repayment and the remaining period of the debt restructuring agreement. The Bank recognizes losses from debt restructuring as expenses in the relevant accounting period. 3.8 Debt Write-Down The Bank has a policy to write down bad debt accounts for over one year that have no clear guidelines of recovery. The written-down accounts are fully recognized as expenses. The accounts recovered or approved to be upgraded are recognized as income. 3.9 Subsidy f rom Government and State Agencies The interest subsidized by the government and state agencies is recognized as an interest income on loans in the statement of income on an accrual basis. 3.10 Translation of Foreign Currencies Assets and liabilities denominated in foreign currencies, including all forward foreign exchange contracts, are recorded in foreign currencies at quoted exchange rates preva i l ing on the date of the transaction which are in line with the onshore foreign exchange market. At the balance sheet date, all such outstanding is translated into Baht at the reference foreign exchange rates announced by the Bank of Thailand at the end of year. Recognition of gains or losses incurred by the translation is included into the total gains or losses on exchange for that year. 3.11 Financial Derivatives and Hedge Accounting The Bank has adopted an accounting policy regarding financial derivatives in compliance with the International Accounting Standard No. 39 (IAS 39), Financial Instruments: Recognition and Measurement. Recognition:

As of the date of the agreements associated

with the financial derivatives, the Bank records them as assets or liabilities at the fair value. After that, the Bank recognizes fair value revaluation changes of those financial instruments as gains or losses in the statement of income or as part of the capital account hedging reserve account in the balance sheet in conformity with the specified accounting principles. For trading financial derivatives, the fair value revaluation changes are recognized as gains or losses in the statement of income. Fair Value of the Financial Derivatives:

Net fair value is the net financial amount which the Bank anticipates to pay or receive in exchanging or settling the financial derivatives at any specified time. The Bank computes the net fair value by determining the present value, using various quoted market prices such as interest rates or currency exchange rates in the computation of discounted cash flows, except for the derivatives that are options which will be computed by the generally accepted option valuation methods. 3.12 Premises and Equipment Premises and equipment are reported at cost less accumulated depreciation and amortization with the exception of those costs not over 3,000 baht which are charged to expenses in the statements of income for the accounting period that they are acquired. Buildings and equipment are depreciated on a straight-line basis over their useful lives, which are as follows: - Buildings 30 years - Building improvement 10 years - Equipment 3-5 years 3.13 Properties Foreclosed Properties foreclosed consist of movable and immovable assets which are reported at fair value.

8988

Losses on impairment of properties foreclosed are recognized as non-interest expenses in the statement of income. When properties foreclosed are disposed of, the Bank recognizes such gains or losses as non-interest income or non-interest expenses. 3.14 Contingent Liabilities from Export Credit Insurance Services The serv ices re lated to export credi t insurance are reported under the contingent liabilities caption of the balance sheet as export bills insured. Any payment of insurance claims is recorded as insurance claim receivables and will subsequently be recovered from foreign buyers. The Bank would make provisioning rules for export credit insurance claim receivables as follows: 3.14.1 Allowance for doubtful accounts on the payments of insurance claims: The Bank would make provisions for the payments of insurance claims equal to the difference between the book value of loans and the present value of expected cash f low from the debtors. 3.14.2 Provisions for future claims against the export credit insurance policies: The Bank would make provisions for future claims against the export credit insurance policies at the rate of at least 2% of the outstanding export bills insured at the end of every quarter, that is end of March, end of June, end of September and end of December. If the computed target level of provisions for future claims of any quarter is lower

than the book balance, the Bank will continue to strengthen the provisions at the rate of 0.1% of the outstanding export credit insurance policies. In case of any losses under the export credit insurance services which may affect the Bank’s operations and/or total required capital, the Bank will request a loss compensation from the Ministry of Finance as stated in Section 24 of the Export-Import Bank of Thailand Act, 1993 (B.E. 2536). 3.15 Leasehold Rights Leasehold rights are recognized as expenses by being amortized on a straight-line basis over the lease period, but not exceeding the maximum extendable lease period. 3.16 Staff Provident Fund Contributions to the employee provident fund are made under the provisions of “The Staff Provident Fund of Export-Import Bank of Thailand Already Registered”, which has been registered as a legal entity. Employee shall make contribution to the provident fund at 3-8.5% of salary and the Bank’s supplemental contribution is at 4-8.5% of employee’s salary according to years of working. TISCO Asset Management Company Limited has been appointed as the fund manager. 3.17 Appropriation of Annual Net Income The Bank appropriates no less than half of the annual net profit as a reserve for its operations while the remainder of the net profit is appropriated to the capital fund and/or remitted to the Ministry of Finance.

• A n n u a l R e p o r t 2 0 0 8

4.1.2 Foreign Items

As at December 31, 2008 and 2007, the interbank and money market items (assets)

Unit : Million Baht

U.S. Dollars 1,061.08 223.91 1,284.99 379.97 3,298.77 3,678.74

Yen 47.09 - 47.09 50.23 - 50.23

Euro 58.37 98.53 156.90 23.79 - 23.79

Other currencies 44.80 - 44.80 85.98 - 85.98

Total Foreign items 1,211.34 322.44 1,533.78 539.97 3,298.77 3,838.74

Add Accrued interest receivables 0.69 0.02 0.71 0.82 13.04 13.86

Total 1,212.03 322.46 1,534.49 540.79 3,311.81 3,852.60

Total domestic and

foreign items 1,306.95 4,168.95 5,475.90 1,016.82 4,522.92 5,539.74

December 31, 2008 December 31, 2007

At call Term Total At call Term Total

4. Additional Information 4.1 Interbank and Money Market Items (Assets) 4.1.1 Domestic Items

Unit : Million Baht

Bank of Thailand 3.56 1,950.00 1,953.56 261.45 300.00 561.45

Commercial banks 91.36 1,896.16 1,987.52 214.58 330.00 544.58

Other banks - - - - 581.00 581.00

Total domestic items 94.92 3,846.16 3,941.08 476.03 1,211.00 1,687.03

Add Accrued interest receivables - 0.33 0.33 - 0.11 0.11

Total 94.92 3,846.49 3,941.41 476.03 1,211.11 1,687.14

December 31, 2008 December 31, 2007

At call Term Total At call Term Total

included unclassified loans of 4,070.40 million baht and 1,640.43 million baht, respectively.

9190

Unit : Million Baht

December 31, 2008 December 31, 2007

Cost/ Fair Value

Cost/ Fair Value

Amortized Cost Amortized Cost

4.2 Investments 4.2.1 Current Investments

(1) Available-for-sale investments

Government and state

enterprise securities

Private enterprise debt

instruments

Total

Add (Less) Allowance for revaluation

Total

(2) Held-to-maturity debt instruments

Government and state

enterprise securities

Foreign debt instruments

Total

Add Allowance for revaluation

Total

Total current investments-net

591.63 609.08 946.98 946.23

100.36 101.43 71.20 71.15

691.99 710.51 1,018.18 1,017.38

18.52 - (0.80) -

710.51 710.51 1,017.38 1,017.38

40.24 99.99

977.05 444.78

1,017.29 544.77

0.14 1.81

1,017.43 546.58

1,727.94 1,563.96

• A n n u a l R e p o r t 2 0 0 8

In 2008, the Bank purchased investment units in two open-ended funds as follows: 1. Mutual Fund that mobilizes funds from institutional investors for investment in energy or alternative energy-related businesses. The Mutual

Unit : Million Baht

December 31, 2008 December 31, 2007

Cost/ Fair Value

Cost/ Fair Value

Amortized Cost Amortized Cost

4.2.2 Long-term Investments

(1) Available-for-sale investments

Government and state enterprise

securities

Private enterprise debt instruments

Foreign debt instruments

Domestic marketable equity

securities-listed securities

Total

Add Allowance for revaluation

Total

(2) Held-to-maturity debt instruments

Government and state enterprise

securities

Private enterprise debt instruments

Foreign debt instruments

Total

(Less) Allowance for revaluation

Total

(3) General investments

Mutual Fund

Others

Total

Total long-term investments-net

1,644.25 1,737.43 1,029.27 1,055.79

124.79 128.87 701.19 694.58

- - 67.54 67.34

26.07 14.18 1.07 3.08

1,795.11 1,880.48 1,799.07 1,820.79

85.37 - 21.72 -

1,880.48 1,880.48 1,820.79 1,820.79

- 41.26

70.00 70.00

524.54 1,447.82

594.54 1,559.08

(1.51) (1.25)

593.03 1,557.83

41.65 -

0.51 0.51

42.16 0.51

2,515.67 3,379.13

Fund’s redemption will start in the 6th year (2013) onwards in case the Fund has earned dividend income, income from sale of secur i t ies or i ts properties, or other income, which are not deployed for reinvestment. The Bank purchased a total of 3.66

9392

million investment units, which based on the par value of 10 baht per unit, represented 36.65 million baht of investments. 2. Mutua l Fund for long-term investment in industr ies cruc ia l to nat iona l development with a focus on investments in companies having high capacity in innovations and

Unit : Million Baht

December 31, 2008 December 31, 2007

Time to Maturity Total

Time to Maturity Total

1 year

Over Over 1 year

Over Over

1-5 years 5 years 1-5 years 5 years

4.2.3 Time to Maturity of Debt Instruments

Available-for-sale investments

Government and state

enterprise securities

Private enterprise debt

instruments

Foreign debt instruments

Total

Add (Less) Allowance for revaluation

Total

Held-to-maturity debt instruments

Government and state

enterprise securities

Private enterprise debt

instruments

Foreign debt instruments

Total

Add (Less) Allowance for revaluation

Total

Total debt instruments

591.63 689.82 954.43 2,235.88 946.98 1,029.27 - 1,976.25

100.36 24.79 100.00 225.15 71.20 499.65 201.54 772.39

- - - - - 67.54 - 67.54

691.99 714.61 1,054.43 2,461.03 1,018.18 1,596.46 201.54 2,816.18

18.52 24.69 72.57 115.78 (0.80) 24.75 (5.04) 18.91

710.51 739.30 1,127.00 2,576.81 1,017.38 1,621.21 196.50 2,835.09

40.24 - - 40.24 99.99 41.26 - 141.25

- 70.00 - 70.00 - 70.00 - 70.00

977.05 524.54 - 1,501.59 444.78 1,447.82 - 1,892.60

1,017.29 594.54 - 1,611.83 544.77 1,559.08 - 2,103.85

0.14 (1.51) - (1.37) 1.81 (1.25) - 0.56

1,017.43 593.03 - 1,610.46 546.58 1,557.83 - 2,104.41

1,727.94 1,332.33 1,127.00 4,187.27 1,563.96 3,179.04 196.50 4,939.50

technologies for inf rastructure development, manufacturing companies for import substitution, as well as companies expanding their businesses and investments overseas. The Bank subscribed and paid for 5,000 investment units, which based on the par value of 1,000 baht per unit, represented 5 million baht of investments.

• A n n u a l R e p o r t 2 0 0 8

Unit : Million Baht

Unit : Million Baht

December 31, 2008 December 31, 2007

December 31, 2008

Name of Company Type of Share Percentage of

Investment

Shareholding

Equity Method Cost Method

4.2.4 Revaluation Surplus on Investments

4.2.5 Investment in Associated Company On June 5, 2008, the Bank invested in the ordinary shares of Thai EXIM International Company Limited in the amount of 4.29 million baht or 49% of the initial paid up capital which is 8.75 million baht. The company, incorporated on May 27, 2008, with registered share capital of 35 million baht,

Revaluation surplus on investments

Debt instruments 114.41 19.47

Equity securities (11.89) 2.01

Total 102.52 21.48

Thai Exim International Co.,Ltd. Ordinary 49 3.92 4.29

is located at EXIM Building 1193 Phaholyothin Road, Samsen Nai, Phayathai, Bangkok. The company’s main objectives are to provide advisory services relating to import and export businesses, claims administration and investments. As at December 31, 2008, the Bank had investment in associated company as follows:

9594

December 31, 2008 December 31, 2007

4.3 Loans and Accrued Interest Receivables 4.3.1 Classified by Type of Loan

Foreign loans include loans extended to foreign government agencies in accordance with the Thai government policy, with interest charged from those borrowers at the rate of 1.50% p.a. and 3.00% p.a. The differences between such interest rate and the cost of fund of the Bank were subsidized by the Thai government or concerned state agencies. Moreover, in a certain project, the Bank received an additional operating fee at 0.75% p.a. apart from the interest revenue. By the cabinet resolution passed on June 8, 2004, the Bank extended a loan of 4,000 million baht to a foreign government agency and has been protected against potential loss therefrom in accordance with Section 23 of the Export-Import Bank

Unit : Million Baht

Overdrafts 279.60 357.87

Domestic loans - customers 35,423.13 39,140.39

- export bills negotiation 856.29 1,791.49

- staff loans 215.32 203.19

Foreign loans - foreign government agencies 5,617.66 5,663.95

- foreign investors 8,355.77 5,594.91

Total 50,747.77 52,751.80

Add Accrued interest receivables 416.93 835.65

Total loans and accrued interest receivables 51,164.70 53,587.45

(Less) Allowance for doubtful accounts (2,877.98) (2,515.10)

Revaluation allowance for debt restructuring (169.47) (803.41)

Total 48,117.25 50,268.94

of Thailand Act, 1993 (B.E. 2536), which reads “In the event that the Bank suffers damages from its business operation in compliance with government policies or cabinet resolutions, the Ministry of Finance shall appropriate fund from the annual budget to compensate the Bank for such damages.” As at December 31, 2008, the drawdown of such loan totaled 3,946.14 million baht. The Asset Examination Committee (AEC) completed its investigation on the government’s policy on the said loan and filed a lawsuit to the Supreme Court’s Criminal Division for Holders of Political Positions on June 27, 2008. The Supreme Court accepted the lawsuit on July 30, 2008.

• A n n u a l R e p o r t 2 0 0 8

Unit : Million Baht

Unit : Million Baht

4.3.3 Classified by Currencies and Residency of Borrowers (Excluding Accrued Interest Receivables)

December 31, 2008 December 31, 2007

4.3.2 Classified by Maturity of Contracts (Excluding Accrued Interest Receivables)

4.3.4 Classified by Delinquency Status

Within 1 year 30,670.08 33,081.60

Over 1 year 20,077.69 19,670.20

Total 50,747.77 52,751.80

Baht 33,192.75 6,214.69 39,407.44 36,155.52 4,910.48 41,066.00

U.S. Dollars 3,416.07 7,758.74 11,174.81 5,170.21 6,348.38 11,518.59

Other currencies 165.52 - 165.52 167.21 - 167.21

Total 36,774.34 13,973.43 50,747.77 41,492.94 11,258.86 52,751.80

December 31, 2008 December 31, 2007

Domestic Foreign Total Domestic Foreign Total

Unit : Million Baht

December 31, 2008

Loans and Outstanding Debt Minimum Allowance

Accrued Interest after Deduction of Provision Rate for Doubtful

Receivables Collateral Value (%) Accounts

Pass 37,918.73 37,918.73 1 379.19

Special mention 913.91 913.91 2 18.28

Sub-standard 1,531.01 1,003.81 100 1,003.81

Doubtful 1,651.38 860.44 100 860.44

Doubtful of loss 1,544.40 372.48 100 372.48

Total 43,559.43 41,069.37 2,634.20

Allowance for doubtful accounts based

on restructured debt quality 1,538.97 1,235.22 1, 20, 50 43.78

Total 45,098.40 42,304.59 2,677.98

Excess allowance for doubtful accounts over provision required 200.00

Allowance for doubtful accounts based on debt service ability and debt quality as at December 31, 2008 2,877.98

9796

Unit : Million Baht

Unit : Million Baht

Pass 39,839.42 39,839.42 1 398.39

Special mention 1,425.12 1,425.12 2 28.50

Sub-standard 1,787.38 427.16 100 427.16

Doubtful 616.18 405.88 100 405.88

Doubtful of loss 521.71 470.99 100 470.99

Total 44,189.81 42,568.57 1,730.92

Allowance for doubtful accounts based

on restructured debt quality 3,071.81 2,478.36 1, 20, 50 104.18

Total 47,261.62 45,046.93 1,835.10

Excess allowance for doubtful accounts over provision required 680.00

Allowance for doubtful accounts based on debt service ability and debt quality as at December 31, 2007 2,515.10

Non-performing loans are loans on which principal repayments and/or interest payments are in arrears for over three months from the due date, or loans on which principal repayments or interest payments are in arrears for not over three months from the due date, but the principal repayment or interest payment capabilities are deemed uncertain, except there are reasonable grounds that loans could be performing based on the following:

(1) Borrowers being analyzed for repayment capabilities and approved to extend the restructuring of the interest receivable as the loan principal or to relax or restructure the loan repayment terms and conditions. (2) Borrowers supported by the additional agreements or contracts of the new debt repayment terms and conditions under the debt restructuring agreements.

December 31, 2008 December 31, 2007

Loans

Loans and As % of Loans Loans and As % of Loans

Accrued Interest and Accrued Accrued Interest and Accrued

Receivables Interest Receivables Receivables Interest Receivables

Non-performing loans 4,726.80 9.24 2,925.27 5.46

Unclassified loans 6,066.30 11.86 6,325.83 11.80

December 31, 2007

Loans and Outstanding Debt Minimum Allowance

Accrued Interest after Deduction of Provision Rate for Doubtful

Receivables Collateral Value (%) Accounts

• A n n u a l R e p o r t 2 0 0 8

2008 2007

Restructured Debts As % of Loans As % of Loans

Cases Amount and Accrued Cases Amount and Accrued

Interest Receivables Interest Receivables

Unit : Million Baht

In 2008, the Bank wrote down debt accounts in the amount of 945.36 million baht. As at December 31, 2008 and 2007, the outstanding balance of written-down accounts, which was not included in the financial statements, was 1,278.65 million baht and 330.06 million baht, respectively. In 2008 and 2007, the Bank approved the write-off of bad debts in the amount of 128.76 million baht and 224.65 million baht, respectively, of

which the written-off bad debts for the year 2007 in the amount of 93.19 million baht were written-down accounts. 4.3.5 Troubled Debt Restructuring In 2008 and 2007, the Bank had restructured debts applying the adjustment of repayment conditions and transfer of assets as restructuring method, in accordance with the Thai Accounting Standard No. 34, as follows:

Succeeded 41 391.03 0.76 18 1,838.44 3.43

In-process - - - - - -

Outstanding of debt changed to

normal at the end of period 24 1,538.97 3.01 29 3,196.63 5.97

9998

Unit : Million Baht

In 2008 and 2007, the Bank restructured debts as follows:

Transfer of assets or owners’

equity - - - -

Change of repayment conditions

Terms of debt restructuring

agreements

- Less than 5 years 38 307.06 297.82 196.29

- 5 to 10 years 3 83.97 83.97 95.70

- Over 10 years - - - -

Debt restructuring in various forms

Terms of debt restructuring

agreements

- Less than 5 years - - - -

- 5 to 10 years - - - -

- Over 10 years - - - -

Total 41 391.03 381.79 291.99

Outstanding Debt

Before After

As at

Cases Restructuring Restructuring

December

31, 2008

2008

Transferred Assets

Type Fair Value

Type of Restructuring

• A n n u a l R e p o r t 2 0 0 8

Unit : Million Baht

In 2008 and 2007, the Bank recognized interest income from debt restructuring in the amount of 136.70 mill ion baht and 102.88 mill ion baht, respectively.

Outstanding Debt

Before After

As at

Cases Restructuring Restructuring

December

31, 2007

Transfer of assets or owners’

equity 1 174.15 174.15 - Land, Factory, 294.21

Change of repayment conditions Machinery

Terms of debt restructuring

agreements

- Less than 5 years 16 1,303.85 1,303.85 1,357.89

- 5 to 10 years - - - -

- Over 10 years - - - -

Debt restructuring in various forms

Terms of debt restructuring

agreements

- Less than 5 years 1 360.44 360.44 115.97 Land, Factory, 393.22

- 5 to 10 years - - - - Machinery

- Over 10 years - - - -

Total 18 1,838.44 1,838.44 1,473.86 687.43

2007

Transferred Assets

Type Fair Value

Type of Restructuring

As at December 31, 2007, the Bank had commitments to extend additional loans to these borrowers for the amount of 5.31 million baht.

101100

In 2008 and 2007, outstanding debt before restructuring compared to outstanding loans

4.3.6 Loans Under Transfer-Net As at December 31, 2007, the outstanding balance of loans under transfer-net was 1,638.73 million baht. The Bank had transferred the right, ownership and any benefits over the debts,

Unit : Million Baht

Unit : Million Baht

December 31, 2008 December 31, 2007

Cases Amount Cases Amount

December 31, 2008

Pass

Special Sub- Doubtful

Doubtful Restructured Excess

Total Mention Standard of Loss Debt Allowance

Restructured debt 41 391.03 18 1,838.44

Loans and accrued interest receivables 997 51,164.70 1,496 53,587.45

Beginning balance 398.39 28.50 427.16 405.88 470.99 104.18 680.00 2,515.10

Doubtful accounts (19.20) (10.22) 576.65 454.56 847.67 (54.25) (480.00) 1,315.21

Debts sold - - - - - (5.59) - (5.59)

Debts written down - - - - (945.36) - - (945.36)

Bad debts written off - - - - (0.82) (0.56) - (1.38)

Ending balance 379.19 18.28 1,003.81 860.44 372.48 43.78 200.00 2,877.98

and accrued interest receivables were as follows:

including all related title documents, to Sukhumvit Asset Management Company Limited (Sukhumvit AMC), the buyer, completely on February 27, 2008. The Bank received the full payment, net of deposit of 514.36 million baht.

4.4 Allowance for Doubtful Accounts

• A n n u a l R e p o r t 2 0 0 8

As at December 31, 2008 and 2007, the Bank’s allowance for doubtful accounts on loans accounted for 2,877.98 million baht and 2,515.10 million baht, respectively, which was greater than the

Unit : Million Baht

December 31, 2007

Pass

Special Sub- Doubtful

Doubtful Restructured Excess

Total Mention Standard of Loss Debt Allowance

Beginning balance 409.33 50.94 199.56 125.81 3,845.81 41.45 1,865.47 6,538.37

Doubtful accounts (10.94) (22.44) 227.60 280.07 1,852.19 64.93 (1,185.47) 1,205.94

Debts sold - - - - (5,210.93) - - (5,210.93)

Debts written down - - - - - - - -

Bad debts written off - - - - (16.08) (2.20) - (18.28)

Ending balance 398.39 28.50 427.16 405.88 470.99 104.18 680.00 2,515.10

Unit : Million Baht

December 31, 2008 December 31, 2007

Beginning balance 803.41 1,243.56

Increase 78.54 34.09

Decrease 712.48 474.24

Ending balance 169.47 803.41

minimum provisioning requirement based on debt service ability and debt quality set out by the Bank of Thailand because the Bank considered the allowance on a prudent banking basis.

4.5 Revaluation Allowance for Debt Restructuring

103102

4.6 Properties Foreclosed-Net

* In 2008 The Bank changed the method for revaluation of properties foreclosed from present value estimates to quoted market prices, which resulted in a reversal of allowance for impairment on properties foreclosed in the amount of 154.40 million baht.

Unit : Million Baht

Unit : Million Baht

December 31, 2008

Type of properties foreclosed

Beginning balance Increase Disposal Ending balance

December 31, 2007

Type of properties foreclosed

Beginning balance Increase Disposal Ending balance

Properties obtained from debt settlement

- Immovable properties 1,081.54 3.73 50.88 1,034.39

- Movable properties 93.46 - - 93.46

Total properties foreclosed 1,175.00 3.73 50.88 1,127.85

(Less) Allowance for impairment (283.71) 130.01* (0.34) (153.36)

Total properties foreclosed-net 891.29 133.74 50.54 974.49

Properties obtained from debt settlement

- Immovable properties 577.06 523.64 19.16 1,081.54

- Movable properties 3.31 93.31 3.16 93.46

Total properties foreclosed 580.37 616.95 22.32 1,175.00

(Less) Allowance for impairment (179.10) (106.53) (1.92) (283.71)

Total properties foreclosed-net 401.27 510.42 20.40 891.29

• A n n u a l R e p o r t 2 0 0 8

4.7 Premises and Equipment-Net

* Assets under construction-disposal are assets recognized during the year.

Unit : Million Baht

December 31, 2008

Cost Accumulated depreciation Net

Beginning

Ending Beginning

Ending

Premises

Balance

Increase Disposal Balance Balance

Depreciation Disposal Balance

and

Equipment

Land 388.20 - - 388.20 - - - - 388.20

Buildings

- Buildings 676.78 - - 676.78 240.95 22.70 - 263.65 413.13

- Building

improvement 132.21 0.30 - 132.51 85.26 11.34 - 96.60 35.91

Equipment

- Office equipment

and fixtures 221.66 18.10 2.54 237.22 165.84 19.69 2.52 183.01 54.21

- Vehicles 74.14 14.63 2.09 86.68 37.54 14.60 2.09 50.05 36.63

Amortized assets 0.03 - 0.03 - - - - - -

Assets under

construction* - 1.76 1.17 0.59 - - - - 0.59

Total 1,493.02 34.79 5.83 1,521.98 529.59 68.33 4.61 593.31 928.67

105104

* Assets under construction-disposal are assets recognized during the year.

Unit : Million Baht

Land

Buildings

- Buildings

- Building

improvement

Equipment

- Office equipment

and fixtures

- Vehicles

Amortized assets

Assets under

construction*

Total

381.27 6.93 - 388.20 - - - - 388.20

662.07 14.71 - 676.78 218.61 22.34 - 240.95 435.83

108.19 24.75 0.73 132.21 64.35 21.64 0.73 85.26 46.95

211.40 21.18 10.92 221.66 171.98 4.70 10.84 165.84 55.82

72.93 8.83 7.62 74.14 31.71 13.44 7.61 37.54 36.60

- 0.05 0.02 0.03 - - - - 0.03

2.77 40.64 43.41 - - - - - -

1,438.63 117.09 62.70 1,493.02 486.65 62.12 19.18 529.59 963.43

4.8 Other Assets Unit : Million Baht

December 31, 2008 December 31, 2007

Revenue receivables 0.37 0.35

Insurance claim receivables 164.33 172.01

Allowance for insurance claim receivables (164.33) (172.01)

Advance deposits 2.58 2.59

Computer Software 9.93 5.84

Others 12.26 4.95

Total 25.14 13.73

December 31, 2007

Cost Accumulated depreciation Net

Beginning

Ending Beginning

Ending

Premises

Balance

Increase Disposal Balance Balance

Depreciation Disposal Balance

and

Equipment

• A n n u a l R e p o r t 2 0 0 8

4.9 Deposits 4.9.1 Classified by Type of Deposit

4.9.2 Classified by Maturity of Contracts

4.9.3 Classified by Currencies and Residency of Depositors

* Inclusive of expired contracts.

Unit : Million Baht

Unit : Million Baht

December 31, 2008 December 31, 2007

December 31, 2008 December 31, 2007

Current 752.72 1,225.68

Savings 112.96 30.68

Term

- Less than 6 months 367.73 267.71

- 6 months up to less than 1 year 26.26 26.00

- 1 year and over 3,041.14 3,105.83

Total 4,300.81 4,655.90

Within 1 year* 4,300.81 4,655.90

Over 1 year - -

Total 4,300.81 4,655.90

Unit : Million Baht

Baht 3,966.50 6.72 3,973.22 3,886.57 0.81 3,887.38

U.S. Dollars 235.58 63.14 298.72 612.44 147.39 759.83

Other currencies 28.84 0.03 28.87 8.66 0.03 8.69

Total 4,230.92 69.89 4,300.81 4,507.67 148.23 4,655.90

December 31, 2008 December 31, 2007

Domestic Foreign Total Domestic Foreign Total

107106

4.10 Interbank and Money Market Items (Liabilities) Unit : Million Baht

Unit : Million Baht

Domestic

Bank of Thailand - 1,382.72 1,382.72

Commercial banks 0.36 500.00 500.36

Other banks 28.46 6,000.00 6,028.46

Finance companies, finance and securities companies,

securities companies, and credit foncier companies - 2,800.00 2,800.00

Other financial institutions - - -

Total domestic items 28.82 10,682.72 10,711.54

Foreign

U.S. Dollars 652.03 183.30 835.33

Other currencies 185.68 - 185.68

Total foreign items 837.71 183.30 1,021.01

Total domestic and foreign items 866.53 10,866.02 11,732.55

Domestic

Bank of Thailand - 2,142.78 2,142.78

Commercial banks 0.40 - 0.40

Other banks 16.22 4,200.97 4,217.19

Finance companies, finance and securities companies,

securities companies, and credit foncier companies - - -

Other financial institutions - 900.00 900.00

Total domestic items 16.62 7,243.75 7,260.37

Foreign

U.S. Dollars 168.91 93.62 262.53

Other currencies 135.00 - 135.00

Total foreign items 303.91 93.62 397.53

Total domestic and foreign items 320.53 7,337.37 7,657.90

December 31, 2008

At call Term Total

December 31, 2007

At call Term Total

• A n n u a l R e p o r t 2 0 0 8

4.11 Borrowings Unit : Million Baht

Unit : Million Baht

Short-term borrowings

- Export-Import Bank of Thailand bonds 3,000.00 - 3,000.00

- Others 2,500.00 - 2,500.00

Total short-term borrowings 5,500.00 - 5,500.00

Long-term borrowings

- Export-Import Bank of Thailand bonds 4,200.00 14,676.37 18,876.37

- Others 8,745.61 - 8,745.61

Total long-term borrowings 12,945.61 14,676.37 27,621.98

Total borrowings 18,445.61 14,676.37 33,121.98

Short-term borrowings

- Export-Import Bank of Thailand bonds 16,000.00 - 16,000.00

- Others 2,650.00 - 2,650.00

Total short-term borrowings 18,650.00 - 18,650.00

Long-term borrowings

- Export-Import Bank of Thailand bonds 7,200.00 9,111.69 16,311.69

- Others 8,749.48 - 8,749.48

Total long-term borrowings 15,949.48 9,111.69 25,061.17

Total borrowings 34,599.48 9,111.69 43,711.17

December 31, 2008

Domestic Foreign Total

December 31, 2007

Domestic Foreign Total

109108

Details of the long-term borrowings of 27,621.98 million baht and 25,061.17 million baht were as follows:

4.12 Advance Deposits As at December 31, 2008 and 2007, the Bank had advance deposits of 4.97 million baht and 518.11 million baht, respectively. As at December 31,

4.14 Capital The Bank had an initial capital of 2,500 mil l ion baht (of which 843.47 mil l ion baht was provided by the Ministry of Finance and 1,656.53 million baht by the Bank of Thailand). On July 31,

Unit : Million Baht

EXIM Thailand bonds 5 2010-2011 5.50-5.95 4,200.00 7,200.00

Debt Instruments (FRN) 5 2010-2013 LIBOR+[(0.05)-0.20] 14,676.37 9,111.69

Others 2-10 2010-2016 0.50-5.75 8,745.61 8,749.48

Total 27,621.98 25,061.17

Type

Tenor Maturity Interest rate December 31, 2008 December 31, 2007

(years) (years) (% per annum)

Unit : Million Baht

December 31, 2008 December 31, 2007

Expenses payable 17.76 25.07

Accounts payable 3.04 1.10

Deferred revenues 40.75 20.59

Withholding tax payable 4.22 5.55

Provision for contingent liabilities 60.25 24.72

Suspense liabilities 4.15 24.02

Others 0.11 0.11

Total 130.28 101.16

2007, the advance deposit of 514.36 million baht was the guarantee for the asset sale agreement on non-performing loans received from Sukhumvit Asset Management Company Limited.

4.13 Other Liabilities

1998 and December 30, 2008, it received additional capital by 4,000 million baht and 1,300 million baht, respectively, which was provided in full by the Ministry of Finance, thereby bringing the total capital to 7,800 million baht.

• A n n u a l R e p o r t 2 0 0 8

4.15 Contingent Liabilities and Commitments Unit : Million Baht

Liabilities under unmatured import bills 94.32 95.61 189.93

Letters of credit 27.31 359.17 386.48

Export bills insured 8,293.16 65.04 8,358.20

Other contingencies

Other guarantees 890.44 3,868.78 4,759.22

Overdraft accounts not yet drawn 539.52 - 539.52

FX forward purchase/sales contracts 12,804.29 13,705.26 26,509.55

FX swaps 1,169.76 351.06 1,520.82

Foreign currency and interest rate swaps 4,191.70 2,635.75 6,827.45

Interest rate swaps 17,740.00 - 17,740.00

Forward rate agreements 600.00 - 600.00

Total other contingencies 37,935.71 20,560.85 58,496.56

Total 46,350.50 21,080.67 67,431.17

December 31, 2008

Baht Foreign Currencies Total

111110

Unit : Million Baht

Liabilities under unmatured import bills 0.71 268.27 268.98

Letters of credit - 895.50 895.50

Export bills insured 6,880.76 21.11 6,901.87

Other contingencies

Other guarantees 1,784.43 3,739.58 5,524.01

Overdraft accounts not yet drawn 530.65 - 530.65

FX forward purchase/sales contracts 12,779.18 13,195.41 25,974.59

FX swaps 1,273.75 2,842.84 4,116.59

Foreign currency and interest rate swaps 4,191.70 8,428.75 12,620.45

Interest rate swaps 18,290.00 - 18,290.00

Forward rate agreements 1,635.00 1,349.88 2,984.88

Total other contingencies 40,484.71 29,556.46 70,041.17

Total 47,366.18 30,741.34 78,107.52

December 31, 2007

Baht Foreign Currencies Total

Other guarantees: The Bank received a court’s order to suspend the payment under the obligation from the advance payment guarantee issued for a cl ient’s construction project. The court’s judgment was that the client (plaintiff) could ask the guarantee receiver to return the bank guarantee. The Bank will continue to follow up on this matter. 4.16 Derivatives Derivatives are financial instruments whose value varies with the index or price of underlying securities such as interest rate or foreign exchange rate. Asset and Liability Management - Customer Hedging Service The Bank, as a financial intermediary, buys market risk exposure from customers and resells

those risks to the market using derivatives such as foreign exchange forward contracts. - Foreign Exchange and Interest Rate Risk Management The Bank manages such r isks to ensure effectiveness and maintain a balanced position. The derivatives are adopted as a tool in managing market risks associated with the Bank’s assets and liabilities which may result from normal business transactions of the Bank at a certain period of time. The Bank has a policy to manage such risks by using suitable and effective derivatives.

• A n n u a l R e p o r t 2 0 0 8

Unit : Million Baht

Unit : Million Baht

Derivatives as at December 31, 2008 and 2007 were as follows:

4.17 Other Benefits to Directors and Executives The Bank pays no benefits to its directors and executives other than normal remuneration such

December 31, 2008

Contract Value

Net Fair Value of the

Derivative’s Contract

December 31, 2007

Contract Value

Net Fair Value of the

Derivative’s Contract

FX forward purchase/sales contracts 26,509.55 138.10

FX swaps 1,520.82 1.25

Foreign currency and interest rate swaps 6,827.45 (301.39)

Interest rate swaps 17,740.00 186.41

Forward rate agreements 600.00 (9.08)

Total 53,197.82 15.29

FX forward purchase/sales contracts 25,974.59 9.72

FX swaps 4,116.59 10.77

Foreign currency and interest rate swaps 12,620.45 1,108.27

Interest rate swaps 18,290.00 (60.17)

Forward rate agreements 2,984.88 1.04

Total 63,986.51 1,069.63

as meeting allowance and bonus (if any), salary for executives, special monthly allowance for executives (if any).

113112

Branch Offices Contract Term (years) Year of Contract Expiry

Laem Chabang 20 2019

Rangsit 3 2010

Hat Yai 3 2009

Rama IV (two leasing contracts) 3 2011, 2009

Khon Kaen 3 2011

Chiang Mai 3 2011

Bangna-Trad Km. 3 3 2011

4.18 Long-term Leasing Contracts

4.19 Financial Position and Operational Performance Classified by Onshore and Offshore Transactions As the Bank has no foreign branches, its financial position and operational performance are totally related to local branches. 4.20 Reclassification of Accounts Some of the items in the balance sheet and statement of cash flow for the year ended

December 31, 2007 have been reclassified to conform to those presented in the balance sheet for the year ended December 31, 2008. 4.21 Approval of the financial statements These financial statements were approved for issue by the Chairman of the Board of Directors and President on February 20, 2009.

• A n n u a l R e p o r t 2 0 0 8

Board of Directors

Board of Directors Mr. Narongchai Akrasanee Chairman (Independent) Mr. Acksiri Buranasiri Director (Ex-officio) Deputy Director-General, Fiscal Policy Office, Ministry of Finance (representing Director-General, Fiscal Policy Office) Mrs. Apiradi Tantraporn Director (Ex-officio) Director-General, Department of Foreign Trade, Ministry of Commerce Mr. Arthit Wuthikaro Director (Ex-officio) Director-General, Office of Industrial Economics, Ministry of Industry Mr. Apichart Jongskul Director (Ex-officio) Secretary-General, Office of Agricultural Economics, Ministry of Agriculture and Cooperatives Mr. Krit Kraichitti Director (Ex-officio) Director-General, Department of International Economic Affairs, Ministry of Foreign Affairs Mrs. Atchana Waiquamdee Director (Ex-officio) Deputy Governor, Bank of Thailand Miss Orajit Singkalavanich Director (Independent) Mr. Jeerasak Pongpisanupichit Director (Independent) Mr. Arttachai Burakamkovit Director (Independent) (to be appointed) Director (Independent) Mr. Apichai Boontherawara Director (Ex-officio) and Secretary President, Export-Import Bank of Thailand

February 24, 2009

115114

Board of Executive Directors Mr. Acksiri Buranasiri Chairman Miss Orajit Singkalavanich Executive Director Mr. Jeerasak Pongpisanupichit Executive Director (to be appointed) Executive Director Mr. Apichai Boontherawara Executive Director and Secretary

February 24, 2009

Audit Committee Mrs. Atchana Waiquamdee Chairman Mr. Apichart Jongskul Member Mr. Arttachai Burakamkovit Member

February 19, 2009

Compensation Subcommittee (to be appointed) Chairman Miss Orajit Singkalavanich Member Mr. Jeerasak Pongpisanupichit Member

February 24, 2009

Year of Birth: 1945 Education:

• B. Economics (Honors), University of Western Australia • M.A. in Economics, Johns Hopkins University, U.S.A. • Ph.D. in Economics, Johns Hopkins University, U.S.A. Training:

• Director Accreditation Program (DAP 5/2003), Thai Institute of Directors Association (IOD)

Work Experience:

• Minister of Commerce • Senator • Member, National Legislative Assembly of Thailand

• President, Schiller-Stamford International University • Member of the Board, Securities and Exchange Commission Other Positions:

• Chairman of the Board, MFC Asset Management Public Co., Ltd. • Honorary Advisor, Fiscal Policy Research Institute Foundation • Director, Office of Insurance Commission • Chairman of the Steering Committee and Vice Chairman of the Council of Mekong Institute • Member of the Board of Directors and Council of Trustees, Thailand Development Research Institute

Chairman

Mr. Narongchai Akrasanee

• A n n u a l R e p o r t 2 0 0 8

Year of Birth: 1951 Education:

• B.S. in Business Administration, Georgetown University, U.S.A. • M.A. in Business Management, Central Michigan University, U.S.A. Training:

• Senior Executive Training Program (Class 49), Office of the Civil Service Commission • Senior Executive Development Program (Class 9) • Executive Program for Senior Management 2007, Fiscal Policy Research Institute Foundation • Director Certification Program (DCP 93/2007), Thai Institute of Directors Association (IOD) • Seminar on Foreign Debt Management, Georgetown University, U.S.A.

Work Experience:

• Minister Counsellor (Economic and Financial), Embassy of the Kingdom of Thailand, Washington, D.C. • Director, Bureau of International and Macroeconomic Policy, Fiscal Policy Office, Ministry of Finance Other Positions:

• Deputy Director-General, Fiscal Policy Office, Ministry of Finance • Director, International Institute for Trade and Development (Public Organization) • Director, Aeronautical Radio of Thailand Limited

Director and Chairman of the Board of Executive Directors

Mr. Acksiri Buranasiri

117116

Year of Birth: 1949 Education:

• B.A. in Commerce, Thammasat University • M.B.A. in International Trade, Syracuse University, U.S.A. Training:

• The National Defence Course (Class 45), National Defence College of Thailand • Director Certification Program (DCP 86/2007), Thai Institute of Directors Association (IOD) • Top Executive Program in Commerce and Trade : TEPCoT (1/2008)

Work Experience:

• Ambassador, Permanent Representative of Thailand to the World Trade Organization, Geneva, Ministry of Commerce • Director-General, Department of Trade Negotiations, Ministry of Commerce Other Positions:

• Director-General, Department of Foreign Trade, Ministry of Commerce

Director

Mrs. Apiradi Tantraporn

• A n n u a l R e p o r t 2 0 0 8

Year of Birth: 1956 Education:

• B.Con. in Economics (First Class Hons.), Ramkhamhaeng University • M.A. in Economic Development, National Institute of Development Administration (NIDA) Training:

• The National Defence Course (Class 18), National Defence College of Thailand • Senior Executive Training Program (Class 42), Office of Civil Service Commission • Medium Level Executive Development Program (Class 1), Ministry of Industry • Director Accreditation Program (DAP 27/2004), Thai Institute of Directors Association (IOD) • Entrepreneurship Development Program, University of the Philippines

Work Experience:

• Director, Bureau of Industrial Sectors Development, Department of Industrial Promotion, Ministry of Industry • Director, Bureau of Entrepreneur and Enterprise Development, Department of Industrial Promotion, Ministry of Industry • Deputy Director-General, Department of Industrial Promotion, Ministry of Industry • Inspector General, Office of the Permanent Secretary, Ministry of Industry Other Positions:

• Director General, Office of Industrial Economics, Ministry of Industry • Member of the Board, Thai Cane and Sugar Corp. Ltd. • Member of the Board, Thailand Automotive Institute • Member of the Board, Electrical and Electronics Institute • Director, Thailand Textile Institute

Director

Mr. Arthit Wuthikaro

119118

Year of Birth: 1955 Education:

• B.Sc in Physics, Chulalongkorn University • M.Sc in Technology of Environmental Management, Mahidol University Training:

• Senior Executive Training Program (Class 46), Office of the Civil Service Commission • Senior Executive (Class 37), Ministry of Agriculture and Cooperatives • Soil Chemical Analysis and Computer Modeling, British Council, U.K. • 12th International Seminar on Environmental Assessment and Management, Aberdeen University, U.K. • Soil Analysis and Improvement, JICA, Japan

Work Experience:

• Director, Pikunthong Royal Development Study Centre • Director, Land Development Regional Office 8 (Phitsanulok), Ministry of Agriculture and Cooperatives • Director, Land Development Regional Office 10 (Ratchaburi), Ministry of Agriculture and Cooperatives • Deputy Director General, Land Development Department, Ministry of Agriculture and Cooperatives Other Positions:

• Secretary-General, Office of Agricultural Economics, Ministry of Agriculture and Cooperatives • Subcommittee on Commercial Agriculture, Agricultural Research Development Agency (Public Organization) • Director, Dairy Farming Promotion Organization of Thailand, Ministry of Agriculture and Cooperatives

Director and Audit Committee Member

Mr. Apichart Jongskul

• A n n u a l R e p o r t 2 0 0 8

Year of Birth: 1954 Education:

• B.A. in Law, Chulalongkorn University • Master of Comparative Laws, Emory University, Atlanta, U.S.A. Training:

• The National Defence Course (Class 49), National Defence College of Thailand

Work Experience:

• Director, Treaty Division, Department of Treaties and Legal Affairs, Ministry of Foreign Affairs • Deputy Director-General, Department of Economic Affairs, Ministry of Foreign Affairs • Ambassador Extraordinary and Plenipotentiary of the Kingdom of Thailand to the Socialist Republic of Vietnam, Ministry of Foreign Affairs • Director-General, Department of Treaties and Legal Affairs, Ministry of Foreign Affairs Other Positions:

• Director-General, Department of International Economic Affairs, Ministry of Foreign Affairs

Director

Mr. Krit Kraichitti

121120

Year of Birth: 1951 Education:

• B.A. in Economics (First Class Honors & Gold Medal), Thammasat University • M.A. in Economics, Thammasat University • Ph.D. in Economics, University of Michigan, U.S.A. Training:

• Director Certification Program (DCP 98/2008), Thai Institute of Directors Association (IOD) • Advanced Management Program, Harvard Business School

Work Experience:

• Director, Research Department, Financial Sector Restructuring Authority • Consultant, Thailand Development Research Institute • Senior Director, Domestic Economy Department, Monetary Policy Group, Bank of Thailand • Assistant Governor, Monetary Policy Group, Bank of Thailand Other Positions:

• Deputy Governor, Monetary Stability, Bank of Thailand • Director, Economic Society of Thailand

Director and Chairman of the Audit Committee Member

Mrs. Atchana Waiquamdee

• A n n u a l R e p o r t 2 0 0 8

Year of Birth: 1946 Education:

• B.A. in Economics (Honors), Thammasat University •M.A. in Agricultural Industry, Utah State University, U.S.A. Training:

• The Joint State-Private Course (Class 11), National Defence College of Thailand • Politics and Public Administration under Democratic Regime Course for Senior Executives (Class 10) • Director Certification Program (DCP 23/2002), Thai Institute of Directors Association (IOD) • Audit Committee Program (ACP 23/2008), Thai Institute of Directors Association (IOD)

Work Experience:

• Inspector General, Office of the Permanent Secretary, Ministry of Commerce • Deputy Permanent Secretary, Office of the Permanent Secretary, Ministry of Commerce • Director-General, Department of Business Development, Ministry of Commerce • Deputy Secretary-General to the Prime Minister for Political Affairs, Secretariat of the Prime Minister • Member, National Legislative Assembly of Thailand Other Positions:

• Member, Civil Service Sub-Commission on Human Resources Management Development, Office of the Civil Service Commission • Member, Alien Business Committee, Department of Business Development, Ministry of Commerce • Member, Subcommittee on Human Resources, Agricultural Research Development Agency (Public Organization)

Director, Executive Director and Compensation Subcommittee Member

Miss Orajit Singkalavanich

123122

Year of Birth: 1949 Education:

• B.A. in Economics (Honors), Thammasat University •M.A. in Economics (English Program), Thammasat University •M.A. in Economics, Cornell University, U.S.A. •Ph.D. in Economics, Cornell University, U.S.A. Training:

• Training for Internal Assessor, Kasetsart University

Work Experience:

• Vice President for Property Management, Kasetsart University • Advisor to the Minister of Commerce • Dean, Faculty of Economics, Kasetsart University • Advisor to the Minister of Agriculture and Cooperatives • Advisor to the Deputy Minister of Finance Other Positions:

• Lecturer, Department of Economics, Faculty of Economics, Kasetsart University • Member of the Board of Directors, Fish Marketing Organization

Director, Executive Director and Compensation Subcommittee Member

Mr. Jeerasak Pongpisanupichit

• A n n u a l R e p o r t 2 0 0 8

Year of Birth: 1950 Education:

• B.A. in Political Science (Honors), Thammasat University • M.P.A. in Budgeting, Pennsylvania State University, U.S.A. Training:

• The National Defense Course (Class 42), National Defense College of Thailand • Senior Executive Training Program (Class 29), Office of the Civil Service Commission • Director Certification Program (DCP 106/2008), Thai Institute of Directors Association (IOD) • Program Budgeting, U.S.A. • Evaluation System and Forward Estimate, Australia

Work Experience:

• Director, Evaluation Office, Bureau of the Budget, Prime Minister’s Office • Budget Advisor, Bureau of the Budget, Prime Minister’s Office Other Positions:

• Deputy Budget Director General, Bureau of the Budget, Prime Minister’s Office • Director, MCOT Public Company Limited • Director, Port Authority of Thailand • Executive Director, Office of Small and Medium Enterprises Promotion • Executive Director, Gem and Jewelry Institute of Thailand (Public Organization)

Director and Audit Committee Member

Mr. Arttachai Burakamkovit

125124

Year of Birth: 1954 Education:

• B.A. in Economics (Honors), Thammasat University • M.A. in Economics (English Language Program), Thammasat University • Ph.D. in Economics, University of Washington, U.S.A. Training: • Director Accreditation Program (DAP 17/2004), Thai Institute of Directors Association (IOD) • Director Certification Program (DCP 53/2005), Thai Institute of Directors Association (IOD) • Audit Committee Program (ACP 8/2005), Thai Institute of Directors Association (IOD) • Corporate Risk Management Level II, Rabobank, the Netherlands • Capital Market Academy Leader Program (Class 3), Capital Market Academy, The Stock Exchange of Thailand

Work Experience: • Vice President, Head of Investment Banking Department, SCF Finance & Securities Public Co., Ltd. • Senior Vice President, Head of Investment Banking Department, Nava Vickers Ballas Securities Co., Ltd. • General Manager, Rabobank Nederland-Thailand Representative Office • Managing Director, Asset Management Corporation Other Positions: • Member of the New Listing Committee, The Stock Exchange of Thailand • Member of the Audit Subcommittee, Office of Agricultural Futures Trading Commission • Director and Audit Committee Member, Ratchthani Leasing Public Co., Ltd. • Board Member of the Netherlands-Thai Chamber of Commerce (NTCC) • Vice President, Thammasat Economic Association

President, Director and Executive Director

Mr. Apichai Boontherawara

• A n n u a l R e p o r t 2 0 0 8

Senior Executive Vice President

Mr. Somphan Eamrungroj 1

1 2 3

Senior Executive Vice President

Mr. Sirichai Sakornratanakul 2

Senior Executive Vice President

Mr. Kittiporn Limpisvasti 3

Top Executives

127126

Executive Vice President

Mr. Somporn Chitphentom 4

Executive Vice President

Mr. Suthanai Prasertsan 5

Executive Vice President

Mr. Surapon Satimanont 6

5 6 4

• A n n u a l R e p o r t 2 0 0 8

Executive Officers

President : Mr. Apichai Boontherawara Senior Executive Vice President : Mr. Somphan Eamrungroj : Mr. Sirichai Sakornratanakul : Mr. Kittiporn Limpisvasti Executive Vice President : Mr. Somporn Chitphentom : Mr. Suthanai Prasertsan : Mr. Surapon Satimanont Export Credit Insurance Department : Mrs. Warangkana Wongkhaluang Senior First Vice President International Project Department : Mrs. Warangkana Wongkhaluang Senior First Vice President Accounting Department : Miss Pranee Pornsuksavang First Vice President Banking Department : Mrs. Kasina Srisaan First Vice President Business Promotion Department 1 : Mr. Kematat Saicheur First Vice President Business Promotion Department 2 : Mrs. Sutatip Phataravimolphorn First Vice President Business Research Department : Mrs. Kwanjai Tachasanskul Vice President Credit Analysis Department : Mrs. Worarat Wattanagool First Vice President Debt Administration and Credit : Mr. Kiat Tepintrapirak First Vice President Procedure Department General Administration Department : Mr. Kriengsak Sa-nguansak First Vice President Human Resources Department : Mr. Phairoj Poungsuvann Vice President Information Technology Department : Mr. Viroth Chokevivattana First Vice President Investment Banking Department : Miss Yupa Jittrapanun First Vice President Office of Branch Administration : Mr. Boonsom Thaiking First Vice President Office of Internal Audit : Mr. Viboon Chuthathumpitak Assistant Vice President Office of Legal Affairs : Mr. Tawewut Danusawad Assistant Vice President Office of Risk Management : Mr. Chana Boonyachai First Vice President Office of Top Management : Mrs. Arunsri Suppethyapisal First Vice President Strategy and Business Development : Mrs. Piyarat Suntornpong Vice President Department Treasury Department : Mrs. Chomsuda Tuntariyanond First Vice President

April 1, 2009

129128

• A n n u a l R e p o r t 2 0 0 8

Audit Committee

Office of Internal Audit

Office of Legal AffairsGeneral Administration Dept.

Office of Risk ManagementAccounting Dept.

Office of Branch

Administration

Strategy and Business

Development Dept.

Information Technology Dept.Debt Administration and

Credit Procedure Dept.

CompensationSubcommittee

131130

Organization Chart

Board of Directors

President

Senior Executive Vice Presidents-Executive Vice Presidents

Board ofExecutive Directors

Human Resources Dept.

Office of Top Management

Investment Banking Dept.

Credit Analysis Dept.International Project Dept.

Treasury Dept.Export Credit Insurance Dept.

Business Research Dept.Business Promotion Dept. 2

Banking Dept.Business Promotion Dept. 1

• A n n u a l R e p o r t 2 0 0 8

• A n n u a l R e p o r t 2 0 0 8

Addresses

Head Office EXIM Building, 1193 Phaholyothin Road, Phayathai, Bangkok 10400 Tel : 0 2271 3700, 0 2278 0047, 0 2617 2111 Fax : 0 2271 3204 Telex : 20893 EXIMBK TH SWIFT Code : EXTHTHBK Website : www.exim.go.th E-mail : info@exim.go.th Branches in Bangkok and the Vicinity Areas Bangna-Trad Km. 3 Branch Thosapol Land Building 3, Ground Floor, 947 Moo 12, Bangna-Trad Km. 3 Road, Bangna, Bangkok 10260 Tel : 0 2744 0551-3, 0 2744 0556-7, 0 2744 0573-4 Fax : 0 2744 0571 E-mail : bangna@exim.go.th Rama II Branch 174/112-113 Moo 6, Soi Rama II Soi 60, Rama II Road, Samaedam, Bang Khunthian, Bangkok 10150 Tel : 0 2894 1994 Fax : 0 2894 1813 E-mail : rama2@exim.go.th Rama IV Branch Green Tower, Ground Floor, 3656/2 Rama IV Road, Klongton, Klongtoey, Bangkok 10110 Tel : 0 2367 3300-6, 0 2240 1133, 0 2240 1157 Fax : 0 2367 3307-8 E-mail : rama4@exim.go.th Rangsit Branch 44, 46, 48 Soi Phaholyothin 87, Phaholyothin Road, Prachathipat, Thanyaburi, Pathum Thani 12130 Tel : 0 2536 4677-82 Fax : 0 2536 4683-4 E-mail : rangsit@exim.go.th

133132

Seri Thai Branch 56/24-25 Seri Thai Road, Kannayao, Bangkok 10230 Tel : 0 2376 1828 Fax : 0 2376 1770, 0 2376 1776 E-mail : serithai@exim.go.th Bang Rak Sub-branch The Government Savings Bank, Bang Rak Branch 1231 Charoenkrung Road, Suriyawong, Bang Rak, Bangkok 10500 Tel : 0 2632 2353-4 Fax : 0 2632 2351 E-mail : bangrak@exim.go.th Branches in Other Provinces Chiang Mai Branch 158/5-6 Chiang Mai-Lampang Road, Paton, Muang, Chiang Mai 50300 Tel : 0 5322 0596-7, 0 5322 0541 Fax : 0 5322 0585 E-mail : chiangmai@exim.go.th Hat Yai Branch Sinbenjapol Building, 24 Soi P. Nataphol 2, Sripuwanart Road, Hat Yai, Songkhla 90110 Tel : 0 7442 8722-6, 0 7422 1131-2 Fax : 0 7422 1133-4 E-mail : hatyai@exim.go.th Khon Kaen Branch 381/44-45 Mittraphap Road, Nai Muang, Muang, Khon Kaen 40000 Tel : 0 4327 1535-7 Fax : 0 4327 1538 E-mail : khonkaen@exim.go.th Laem Chabang Branch 53/71-74 Moo 9, Sukhumvit Road, Thungsukhla, Sriracha, Chonburi 20230 Tel : 0 3833 0121-6 Fax : 0 3833 0127-8 E-mail : laem_chabang@exim.go.th

Annual Report 2008

Export-Import Bank of Thailand

EXIM Thailand supports more than exports…for economic development.

Annual Report 2008 | Export-Import Bank of Thailand

Export-Import Bank of Thailand

EXIM Building, 1193 Phaholyothin Road, Phayathai, Bangkok 10400Tel : 0 2271 3700, 0 2278 0047, 0 2617 2111 Fax : 0 2271 3204 www.exim.go.th