Bangkok Bank responds to BOT and Finance Ministry’s aim to help businesses fight Covid-19 with soft loans and asset warehousing measures
May 07, 2021
Bangkok Bank Director and Senior Executive Vice President Suvarn Thansathit said the prolonged Covid-19 pandemic affecting economic recovery and additional uncertainties have had widespread impact on businesses, with some expecting it will take several years before operations recover to their pre-Covid level. Bangkok Bank is ready to provide additional assistance to businesses in response to the BOT and Finance Ministry’s measures in two areas as follows:
- Soft Loan Facility aims to increase liquidity for affected businesses while helping their operations recover. Existing customers with a credit line of no more than 500 million baht can seek additional loans of no more than 30% of the credit line as of February 28, 2021. The total cannot be more than 150 million baht when combined with the loan from the previous scheme. New customers who have no credit line with any financial institutions can obtain loans of up to 20 million baht. Credit lines from all financial institutions are taken into account.
During the first five years, an average interest rate of no more than 5% per year will be charged with an annual interest rate of 2% during the first two years and an interest subsidy by the Finance Ministry for the first six months. Bangkok Bank waives relevant fees in applying for the loan to support businesses in overcoming this difficult situation.
In addition, Thai Credit Guarantee Corporation (TCG) will provide loan guarantees for all borrowers with a fee of 1.75% per year while the government will provide a subsidy for part of the fee.
- Asset Warehousing aims to alleviate financial pressure of viable businesses affected by Covid-19 which require a long time to recover by enabling them to transfer their collateral as repayment to the Bank at the agreed price. Businesses may lease their assets from the Bank to continue operations at the agreed price and have the first rights to repurchase their collateral after 3-5 years.
Mr. Suvarn added that providing businesses with liquidity to continue their operations will have a positive impact on the overall economy as well as supporting employment.
Over the past year dealing with the Covid-19 outbreak in Thailand, Bangkok Bank has continuously released supportive measures to help mitigate their impact on various customer groups while standing ready to play a part in ensuring that customers and businesses have access to government assistance measures. This emphasizes the Bank’s status as a trusted partner who stays close to customers to survive and thrive in a crisis together.
Business owners interested in participating in these measures or other measures of the Bank can contact the Bank’s relationship officers, branches or business centers or look for more information from Bangkok Bank channels including Bangkok Bank website, Bangkok Bank LINE Official or call Bualuang Phone 1333 or 0 2645 5555.
