KBank helps SMEs by offering moratorium on principal payments, cutting interest rates
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THE sluggish economy has walloped small and medium-sized enterprises (SMEs), propelling Kasikornbank (Kbank) to rush measures to ease their cost burden by waiving principal payments for 12 months and cutting interest rates.
Predee Daochai, president of Kbank, said yesterday that SMEs have been battered from all sides, from the great floods and political conflicts to minimum wage and baht issues.
The economy looked like it was going to improve this year, but some SMEs are still facing challenges from falling produce prices and rising household debt, while consumer purchasing power is shrinking, causing their sales to plunge.
KBank has been providing assistance to SMEs so that they can continue operating.
“The available financial assistance will depend on the degree of impact on our customers. Customers can select between a grace period on principal or lower rates,” he said.
In the first quarter of this year, KBank offered Bt52 billion in credit to 10,115 affected SMEs to help them restructure their loans to prevent defaults.
KBank keeps rates down as low as possible for heavily-hit SMEs so they can keep their business going. It also provides additional funds for investment or liquidity.
First-quarter new loans shot up 40 |per cent to Bt64 billion from the fourth quarter of last year. New loans in the second quarter are expected to equal the first quarter.
The easing of loan conditions for affected SMEs has been extended to October 31, as the economy has not fully improved.
