27,000 borrowers tap soft loan
Amid criticisms over slowness in loan extension, the Bank of Thailand announced that nearly 27,000 bank borrowers have won loans under its Bt300 billion soft-loan scheme.
In a statement released today, Pongpen Ruengvirayudh admitted that while a total amount approved under the scheme is low, the number of beneficiaries showed that the scheme has achieved its goal in extending financial assistance to small borrowers.
There are criticisms that a small amount under the soft loan scheme has been extended. Under the scheme launched to help small bank borrowers - individuals and SMEs - affected by last year's floods, Bank of Thailand contributed Bt210 billion while participating banks contributed another Bt90 billion.
The scheme started on March 12.
According to Pongpen, as of April 27, participating banks have withdrawn funds under the scheme but it remains clear on the lending activities.
She added that from discussion with banks, they reasoned that an internal system is necessary to streamline lending activities at nationwide branch network. The process should take 1-2 months.
"Most banks informed us that the system has been ready and now they are working with branches and advertising lending schemes," Pongpen said in the statement.
She then urged all flood-affected SMEs and individuals to contact banks that have joined the scheme. Details of the soft loan scheme is available at http://www.bot.or.th.
