GSB to raise B60bn in Q2 for loans

GSB to raise B60bn in Q2 for loans

The Government Savings Bank (GSB) plans to mobilise 60 billion baht in the second quarter this year to fund its plan for loan extensions of 160 billion baht this year.

The fundraising plan will account for 35% of the state-owned bank's total fund mobilisation of 1.7 trillion baht this year, said Woravit Chailimpamontri, president and chief executive, adding the bank would raise funds through deposits and the issuance of premium lottery certificates and other financial instruments.

The bank slated about 30% of its 160 billion in loans to fund government projects, he said.

The GSB plans to bids for loans for the government's 2 trillion baht in infrastructure projects and 350 billion in water management projects.

It already clinched deals to extend loans of 16 billion to finance part of the government's water management projects, and another 100 billion for the rice pledging scheme, said Mr Woravit.

The Bank for Agriculture and Agricultural Cooperatives (BAAC) recently asked the GSB to help finance the rice pledging scheme after the former ran out of funds.

Rice pledging prices, some 40% over market prices when the scheme launched, have made the government practically the sole buyer of rice in the country.Mr Woravit said the bank has deposits of 1.6 trillion baht and lending of 1.7 trillion, with 300-400 billion extended to government projects.

The bank's non-performing loans stand at 1.06% of its outstanding credit. It has 90-100 billion in excessive liquidity.

The GSB launched three-year premium lottery certificates and special deposits for senior citizens yesterday as part of the fundraising plan. The lottery certificates offer an interest rate of 3% per annum plus a chance to win gold with a combined baht-weight of 1,200 (18.29 kilogrammes).

Do you like the content of this article?
COMMENT