Thailand’s loans in export declined by ten percent in January, signaling worst-than-expect hit from the ripple effect of the global financial crisis, said Kasikorn Bank’s managing director Dr. Prasan Triratwarrakul.

Mr. Prasan said, however, credit expansion in the export is seasonal, which mean it normally shrinks at the beginning of the year and incrementally extends towards the yearend.

Mr. Prasan commented that the government’s approval to increase working capital at the Import-Export Bank of Thailand (EXIM Bank) to help export sector is an appraisal attempt, but it will be more practical if the government assures that exporters received the payments.

The Thai government on Wednesday approved a stimulus package of eight billion baht to help exporter easier access into loan resources and insurance in export.

The package covers export assurance of total 150 billion baht over the next three years to help exporter gain liquidity amid the global credit tension.