IT Financing

Introduction  

The financial crisis of 1997 was sparked by the devaluation of the Baht and this had a negative impact on the availability of credit within the country.  With interbank rates held at almost 20%, banks are reluctant to lend to any industry that has a higher risk and lower lending rates. The information technology industry would most likely fall under this description, making domestic financing for IT companies a difficult process.¹

Export-Import Bank   back to top

The Export-Import Bank of Thailand has introduced a number of mechanisms in order to alleviate the the liquidity problems that are faced by the domestic export sector. Provided either directly to the exporters, or indirectly through commercial banks, the facilities include direct packing credits, pre-shipment facilities in US dollars or yen, export credit insurance for commercial banks and US$1 Billion loan from the Asian Development Bank for an export liquidity financing package which is extended through local banks.²

Kogod School of Business           American University        Other Country Reports

Sources:

¹ Country Commercial Guide Thailand, Fiscal Year 1999,  Prepared by The Embassy of the U.S.A., Bangkok, Thailand

^{2  Ibid}