Bt600m loan plan to save some fuel operators
The Energy Business Department under the Energy Ministry and SME Bank yesterday signed an agreement to set up a Bt600-million loan project to relieve the burden of small oil-fuel operators hit by the floods.
The eligible oil-fuel operators include those who operate retail liquefied petroleum gas (LPG) service stations, LPG filling stations, and petrol and LPG logistics. Each operator will be given a loan of not more than Bt1 million with a term of not more than six years. The borrowers are granted exemption from repaying the principal amount for not more than the first two years of loan term. The interest rate will be 3 per cent annually for the whole loan, which will be guaranteed by the Thai Credit Guarantee Corporation.
Eligible borrowers will be given certificates issued by the Energy Business Department or Energy Provincial. The time frame for loan applications, which will be serviced at all branches of SME Bank nationwide, is open from now until March 31 next year.
Bt2 bn eyed
Energy Minister Pichai Naripthaphan yesterday said that the Federation of Thai Industries would meet Prime Minister Yingluck Shinawatra on December 21 to discuss the use of Bt2 billion from Energy Conservative Funds to help businesses hit by the floods to buy new machines and equipment.
Soros Sakornvisava, president of SME Bank, said the bank has set aside Bt20 billion for loans to flood-affected businesses, which are divided into two packages with a credit line of Bt10 billion each.
In the first package, he said the loan would be given to SMEs hit by the floods with no guarantees and back-up assets.
Each will be lent not more than Bt1 million with a fixed interest rate of 6 per cent annually. The term loan is for a maximum of six years.
In the second package, each operator will be advanced loans of not more than Bt5 million with annual interest 2 per cent lower than the minimum lending rate. This package would need guarantees.
Soros said that lending to SMEs next year is expected to grow by 20 per cent to total outstanding of Bt100 billion amid higher demand for loans for business rehabilitation after the floods. “Demand for loans will continue until the next quarter,” he said.
He added that non-performing loans also increased but at a slower pace, standing at Bt17 billion or 18 per cent of total loans, against a high of 40-50 per cent earlier.
