Bangkok--1 Sep--TMB
TMB is the first bank to partner with the International Finance Corporation or IFC (a member of the World Bank Group), to help drive Thailand's economy by bolstering the continued growth of SMEs rebounding from an ever improving economic recovery.
Mr. Paphon Mangkhalathanakun, Chief SME and Supply Chain Officer of TMB Bank said “the partnership with IFC reinforces the Bank’s philosophy of always striving to Make THE Difference in order for our stakeholders to in turn make the difference in their lives. TMB remains focused on providing financial support and liquidity to SME entrepreneurs continuously participating in the development and performance of SME entrepreneurs. The second half of 2014 shows promising signs of an economic pick-up and this 8 billion baht credit facility is a great opportunity for SME entrepreneurs to plan ahead for their business. ”
To help drive the 2h 2014 economic recovery, TMB partnered with IFC to secure customer risks through credit guarantees that are in addition to (or supplemental to) guarantees currently provided by the Thai Credit Guarantee Corporation (TCG). As TMB will absorb the IFC credit guarantee fee, our customers will not be charged additional fees. The total amount is USD 262 million, or about 8 billion baht for liquidity and business expansion. From the customers’ standpoint, this is a very good opportunity for entrepreneurs to ensure increased stability for their businesses. Combined with the government’s stimulus efforts we believe entrepreneurs in Thailand can move forward with greater confidence.”
Mr. Paphon also stated that “SMEs are instrumentally significant in driving businesses for the economy of Thailand. Therefore, the acceleration of support for SME entrepreneurs will need to be done quickly, while also meeting the needs of customers. This is the direction TMB has been focusing on for a period of time. Thus, the cooperation with IFC is happening at an optimal time.”
TMB and IFC have a strong relationship and worked together on a project to assist SMEs entrepreneurs since 2011. This collaboration occurred after the recovery from a major flood with US$50 million in loans (1,550 million Baht) Later in 2012, TMB and IFC agreed to provide US$100 million long-term funding in US currency to SME exporters who were affected by floods in Thailand. In 2013, TMB and IFC struck a deal to prevent risk for import and export entrepreneurs, by supporting Thailand’s entrepreneurs who were looking to expand their businesses into emerging markets through the Global Trade Finance Program (GTFP). TMB bank was the first Thai commercial bank to join the program.