Exim Bank on track to RM1b loan target

The Export-Import Bank of Malaysia Bhd (Exim Bank) is on track to achieve its RM1 billion loan disbursement target for this year with almost RM500 million having been given out.

"The remainder of the loan target will be achieved through a significant contribution to the Asian Development Bank(ADB)-EXIM Trade Finance Programme (TFP)," said Exim Bank Managing Director, Adissadikin Ali.

He said, currently, Exim Bank had a RM3 billion loans book, and almost 60 per cent of it had been disbursed to construction businesses.

Adissadikin told the media this after the signing ceremony between ADB and EXIM Bank for the TFP programme here today.

Under the TFP programme, ADB would provides guarantees to Exim Bank to confirm Letter of Credits (LCs) issued by 78 participating banks within Asia as well as guarantees and loans to partner banks in support of international trade.

"Under the programme, it will expand the range of trade options for Malaysian exporters and minimise non-payment risks to them as well as bolster trade volume between Malaysia and other Asian countries.

"This is particularly in the case of Malaysia's non-traditional markets like Vietnam and Bangladesh," Adissadikin said. - Bernama