Japanese, local banks to help Bangkadi Estate

Executives of Bangkok Bank, Siam Commercial Bank and Kasikornbank met yesterday with the Federation of Thai Industries (FTI) to discuss a financial package for businesses affected by the flooding of that industrial park in Pathum Thani.
The FTI and the banks believe Bangkadi will be the first waterlogged industrial estate to reopen because the flood situation there seems to be easing.
Songpol Chevapanyaroj, executive vice president of KBank, said his bank and four Japanese partner banks would take care of financial matters for Japanese companies operating in Bangkadi.
The priority customers are SMEs and suppliers of manufacturers there.
About 90 per cent of the companies at Bangkadi are Japanese. Japanese partner banks have contacted KBank to facilitate loans to help those firms.
KBank will focus on SMEs and suppliers because they do not have as much cash flow as manufacturers. KBank and its partners would extend short-term and working-capital loans to improve their liquidity.
“We have a few customers operating at Bangkadi but our main customers are outside the industrial estate. They were affected when their customers at the industrial estate suspended operations,” he said.
Sarut Ruttanaporn, executive vice president of Siam Commercial Bank, said the bank had total loans of Bt7 billion outstanding to customers with annual sales of more than Bt500 million at the seven flooded industrial estates.
The bank is ready to facilitate credit lines to companies at Bangkadi.
“We are concerned about the problem of payrolls, as companies might lack liquidity to pay monthly salaries to workers. Besides credit lines, we are prepared to help with payroll fees to relieve the burden of business operators,” he said.
Banks cannot offer interest-free credit to businesses at industrial estates unless the government |steps in to help with a subsidy, Sarut said.