Top bankers pledge support to businesses affected by Covid-19 until early next year

[webfact]

Top bankers pledge support to businesses affected by Covid-19 until early next year

By The Nation

 

 

As economic recovery remains fragile, the country's leading bankers said they would provide financial support to businesses, especially small and medium-sized enterprises (SMEs), until next year.

 

The move follows the end of the blanket debt holiday supported by the Bank of Thailand in October.

 

Financial aid for groups in need will focus on debt restructuring and helping debtors to increase their ability to repay debt, according to the top five bankers.

 

Manop Sangiambut, first executive vice president at Siam Commercial Bank (SCB), estimated that his bank needed to extend financial aid to debtors whose combined loans amount to about Bt300 billion of the loan portfolio of Bt630 billion in the third quarter of this year.

 

Non-performing loans are expected to rise as the economy has not yet returned to growth, he said. The tourism industry is the most affected by the economic slowdown combined with the Covid-19 fallout, he added.

 

Pipatpong Poshyanonda, president of Kasikornbank, shared a similar view, saying the economic trend remains in negative territory, while the hotel and property sectors are facing oversupply. Our bank would not focus on lending more, but would focus on helping debtors to enhance their ability to repay debt, he said.

 

“The bank's loans could expand as the bank lends more to AEC+3 [Asean Economic Community plus China, Japan and South Korea],” he added.

 

Chartsiri Sophonpanich, president of Bangkok Bank, said the bank’s loan quality has slightly deteriorated, but it was not a cause for concern. The bank would support all groups of borrowers, especially SMEs and the property sector, until next year, he added.

 

Payong Srivanich, president and CEO of Krungthai Bank, said SMEs remained fragile while bad debts would not change much. “We would focus on debt restructuring rather than loan growth,” he added.

 

Prakob Phiencharoen, executive vice president at Krungsri Bank, said tourism and property sectors were still in trouble, while big corporates remained resilient. “We, however, have to monitor all groups of borrowers as the economy remains weak and Covid-19 is lingering,” he added.

 

Source: https://www.nationthailand.com/business/30397160

 

-- © Copyright The Nation Thailand 2020-11-02

 

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[RichardColeman]

Probably cheaper in the long run to declare business bankruptcy than continual loan restructuring 

Edited November 1, 2020 by RichardColeman

[yellowboat]

6 hours ago, webfact said:

Payong Srivanich, president and CEO of Krungthai Bank, said SMEs remained fragile while bad debts would not change much. “We would focus on debt restructuring rather than loan growth,” he added.

Most of the world is still fragile, accept for those that did not lock down and China.  Time to sell more fruit and rice to China.   At least they are not offering anymore loans.  They also keep bringing of the tourist industry which is at one third strength.  

[hotchilli]

7 hours ago, webfact said:

Top bankers pledge support to businesses affected by Covid-19 until early next year

Then pay-back time.

[Cake Monster]

13 hours ago, webfact said:

Manop Sangiambut, first executive vice president at Siam Commercial Bank (SCB), estimated that his bank needed to extend financial aid to debtors whose combined loans amount to about Bt300 billion of the loan portfolio of Bt630 billion in the third quarter of this year.

Financial Aid for almost 50% of their Loan Portfolio.

Thats a whole lot of offset required to stop NPL

Beyond belief