SCB suspends debt payments from hotel operators for 6 months
Siam Commercial Bank (SCB) is offering suspension of debt payments to more than 300 hotels reeling under the impact of the Covid-19 outbreak.
Pikun Srimahunt, senior executive vice president of the Siam Commercial Bank said the bank recently allowed hotel clients to pause debt payments for six months on loans up to Bt10 billion each, or about 70 per cent of the Bt130 billion portfolio.
The offer would provide temporary relief to about 300 small and medium-sized hotel operators , she said, adding that the debt moratorium may be extended to 12 months if the Covid-19 epidemic continue.
Room booking for hotels located in popular tourist destinations dropped by 50 per cent in February from the previous month.Only 20-30 per cent of rooms have been booked for March while booking for April continue to slide.
Small and medium hotels are also affected by slower economic growth and drought. Without the debt moratorium, bank lending to these hotel operators will likely turn into non-performing loans, said Pikun who is also Chief SME Banking Officer.
New loans for SME businesses in the first quarter is estimated at about Bt6 to 7 billion. The bank projects that new loans for SMEs with sales between Bt75 to 500 million annually would amount to Bt 50 billion this year, down from Bt58 billion last year.
Therefore, the bank’s outstanding loans this year might decrease by 2 to 3 per cent from Bt260 billion last year. However, construction, renewal energy and government-related businesses still require more loans . Non-performing loans among SMEs are expected to rise to 8.6 per cent in 2019 from 8.3 per cent last year.
To support the tourism industry, the bank is holding “SCBThai Travelling” fair where hotels and related tourism businesses offer promotion packages to domestic travellers . The bank expects Bt5 million in booking from this fair, held from February 24-28.
