EXIM to approve half of RM1b fund by Dec 2007

Export-Import Bank of Malaysia Bhd (EXIM Bank) expects more than half of a RM1billion overseas project fund to be disburse by the end of 2007.

The overseas guarantee facility (EOGF) was established by Bank Negara Malaysia to provide financing to Malaysian firms that are sourcing for, or have obtained, overseas contracts.

“The maximum amount per application is RM100 million. The rate is very competitive.

“We target to approve 70 per cent of the total allocated, and we expect to disburse more than 50 per cent by the end of next year.” managing director-cum-chief executive officer Kamal Mohd Ali told the media after signing the EOGF with four banks in Kuala Lumpur.

The fund also aims to spur the export of Malaysian professional services, such as in the technology, project consultancy and engineering service sectors, abroad.

Companies that are involved in construction and supply of capital or semi-capital goods or services across all economic sectors can get a guarantee cover provided by EXIM bank.

With that, the participating banks – Malayan Banking, CIMB Bank, RHB Bank and AFFINBANK – can provide financing for up to 90 per cent of the contract value in major currencies such as the US Dollar, pound sterling, euro and yen for up to 10 years.

EXIM Bank was established in 1995 to help facilitate the export of Malaysian products, particularly by small- and medium-sized firms.

Apart from providing common financing facilities such as overseas projects and contract financing facilities such as overseas projects and contract financing, buyer credit, supplier credit, guarantee and export of services, it also offers export credit insurance services, export financing insurance and overseas investment insurance.

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