Bangkok Bank proactively introduces financial rehabilitation measures while setting a loan target of 15 billion baht for customers in all business groups
May 28, 2021
Bangkok Bank President Chartsiri Sophonpanich said the Bank is continuing to take close care of its customers, especially during the Covid-19 outbreak which has widely impacted all business sectors. The Bank understands its customer’s needs and has been providing support to solve their short-term liquidity problems so they can continue their business operations. Since the Bank of Thailand (BOT) and the Ministry of Finance have launched financial rehabilitation measures and debt restructuring programs to help businesses affected by the third wave of Covid-19, Bangkok Bank staff have proactively reached out to business owners nationwide to provide advice and ensure they understand the measures so they can benefit from the support in a timely manner. These efforts were well received by customers. With a lending target of 15 billion baht, the Bank’s staff and working systems are ready to support the government measures in helping bank customers, the same way it has previously supported other government policies.
“The Bank has already helped tens of thousands of business owners affected by Covid-19 sustain their businesses through difficult times, which also benefits any business partners, by helping with the adjustment of debt repayments and debt restructuring according to their ability. We have also provided additional loans using soft loans under the measures of the BOT and Ministry of Finance as well as partial loans to boost business liquidity and support employment. When the government launched these extra measures, the Bank was ready to fully provide continuous support.”
Bangkok Bank has placed high importance on looking after affected business customers in line with their issues and supporting them in three phases. The first phase is providing liquidity to sustain the business and employment. The second phase is helping with working capital when businesses have recovered, as customers will need revolving funds to improve their services and produce goods to meet orders. The third phase is supporting their plans when businesses reach a certain point and may need to adjust their business model to suit the changing business environment and market needs. These assistance measures have emphasized Bangkok Bank’s status as a “Trusted Partner and Reliable Close Friend” who stands by your side and is ready to support customers at any time with measures from both the government and the Bank.
The most recent financial rehabilitation measures by the BOT and Finance Ministry are the soft loan facility aimed at increasing liquidity for affected businesses while helping their operations recover with more flexible conditions. 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 amount cannot be more than 150 million baht when combined with any loans from the previous soft loan royal decree. New customers who have no credit line with any financial institutions can obtain loans of up to 20 million baht with credit lines from all financial institutions being 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.
The second measure is the asset warehousing scheme aimed at alleviating 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 an 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.
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.