Bangkok--26 May--KASIKORNBANK
Sluggish economy has affected SMEs severely, propelling KBank to release emergency measures to ease burden for directly and indirectly impacted customers by offering a 12-month grace period on principal repayments and cutting interest rates.
Mr. Predee Daochai, KASIKORNBANK President, said small and medium enterprises (SMEs) have been enduring ordeals conducting their business operations, from the great floods to political conflicts, minimum wage issues and the Baht value. This year’s economy looked as if it was going to improve; however, some SMEs have been challenged by falling produce prices and household debt, while domestic consumer spending power is shrinking, causing their revenues to plunge. KBank has been releasing measures to help SMEs in order to alleviate their burden so they can continue their operations. Available financial assistance will depend on the degree of impact on our customers; customers can select between a grace period on principal or lower interest rates.
During the first quarter this year, KBank offered support to 10,115 affected SMEs, with a total of 52 billion Baht in lending for helping with loan restructuring to prevent debt default. The support comes in the forms of lowering lending rates, of which KBank provides the lowest rates possible for heavily-impacted SMEs so they can keep their businesses going, and up to 12 months of grace period on principal repayments. Furthermore, the Bank also provided additional funds for SMEs wishing to increase investment or liquidity. In 1Q15, KBank offered 64 billion Baht of new loans, a 40-percent expansion from 4Q14. New lending in 2Q15 is expected to equal that of 1Q15.
KASIKORNBANK is determined to provide financial support and assistance to affected SMEs to sustain growth and survive the crisis. For this reason, KBank has extended the easing measures to October 31, 2015, as the economy has not fully improved.