Bangkok--Nov 8--KASIKORNBANK
In support of the government-initiated “Bangkok Fashion City” project, KASIKORNBANK has recently launched a credit extension program for the gem and jewelry industry. These loans and other credit facilities, offered at low interest rates, are being extended to gem and jewelry manufacturers who want to expand their business and boost their liquidity. The Bank is targeting Bt1 billion for this loan segment per year.
Mr. Pipat Aneaknithi, First Vice President, Retail Commercial Credit Product and Marketing Department, said that the Bank has introduced its ‘Jewel Credit Network’ as a way of supporting the Bangkok Fashion City project initiated by the government. Under this program, comprehensive funding has been provided to companies in the gem and jewelry industry, ranging from stone cutting, jewelry crafting and other related businesses. The Bank will support the industry with long-term lending to expand and improve their businesses , Short-term Loan with such products as overdrafts (O/D), promissory notes (P/N) and other credit for international trade such as Packing Credit, Trust Receipts and Letters of Credit.
Minimum loans offered to new customers are Bt3 million while existing clients are eligible for minimum Bt1 million loans (at least Bt3 million in total when combined with existing credit facilities); no individual loan ceiling has been set. Credit applicants must have been in gem and jewelry business for at least three years.
These loans to expand and improve their business can be paid in installments for up to 5 years, with the interest rate in the first year in the range of MRR-1.0 percent to MRR+1.0 percent, while in following years the rate would be MRR-1.0 percent to MRR+2.0 percent. Loans to enhance business liquidity through overdraft facilities (O/D) would be charged MRR-0.5 percent to MRR+1.75 percent. Promissory Notes (P/N) will carry a rate of MLR-1.0 percent to MLR+2.0 percent, while loans for international trade will be charged MLR to MLR+0.25 percent. At present, the MLR is 5.50 percent, and MRR of the Bank is 6.0 percent.
Mr. Pipit also added that the gem and jewelry is an industry involved in design and craftsmanship where Thai people have skill, expertise and the potential to compete in the world market. Therefore, it is an industry that is important to the economic development of the country, particularly in creating income through exports. At present, export value account for approximately 80 percent of total gem and jewelry production, and their export value in 2004 will be around USD 2,892 million, increasing over 2003 by 15 percent. KASIKORNBANK has set a target to extend total loans of approximately Baht1 billion to the gem and jewelry industry in the first year of this program. End.