Bangkok Bank (BBL) has formulated measures to help small and medium-sized enterprise (SME) clients hurt by the recent political rallies.
A vendor puts up keychains at a stall at Chatuchak Weekend Market, a popular marketplace that is filled with a large number of small operators. APICHIT JINAKUL
Executive chairman Kosit Panpiemras said BBL would focus mainly on customers in tourism, hotel and retail businesses located in areas where rallies were held from October-May.
The measures cover both financial and non-financial assistance including additional credit lines, loan period extension, easing debt payment conditions, reduced interest rates and financial advice.
For instance, it will extend the repayment period for up to 12 months. Under easing measures, liquidity support is a key factor due to SME clients facing a liquidity crunch and difficulties paying debts.
“We are not concerned much about the asset quality of our SME clients’ portfolios, as most of them can adjust themselves and survive, and also we’ve managed non-performing loans (NPLs) for the SME segment well. But some of them need more adjustment to cope with the uncertainties,” said Mr Kosit.
Separately, senior executive vice-president Virasak Suthanthavibul said the rising NPL rate among SME loans in the second quarter is not a concern, as it remains manageable.
SME customers affected by the recent political rallies number in the tens of thousands, he said.
Operators in the tourism sector have been most affected by the political uncertainty, but since the coup and lifting of the curfew, the situation has improved, Mr Kosit said.
“If martial law is lifted, tourism is expected to return to normal within two months,” said Mr Kosit.
“SME loan demand in the second half of the year is expected to be better in line with the improving economic momentum and investors’ sentiment."
Earlier, Kasikornbank also launched measures to ease the financial burden of SME clients hit by the political turmoil. These measures, however, are limited to clients in the tourism and agribusinesss sectors.
The Finance Ministry has also prepared measures to help SMEs that are expected to be finalised by July including subsidies for the first-year credit guarantee fee, with the aim to prod lenders to extend 137 billion baht in new loans while injecting 825 billion baht of liquidity into the economy.
Wichet Warakul, a senior executive vice-president of the Thai Credit Guarantee Corporation, said the package — which could cost the state 3.97 billion baht — was subject to approval by the National Council for Peace and Order.
Under the measures, the annual credit guarantee fee payment will be extended for another six months for 50,000 SMEs that are due to pay charges from June-December.
BBL shares closed yesterday on the SET at 192 baht, down 1.50 baht, in trade worth 917 million baht.