Thai banks aim to lend $3 billion to virus-hit business by October

[snoop1130]

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand April 26, 2016. REUTERS/Jorge Silva/File Photo GLOBAL BUSINESS WEEK AHEAD PACKAGE SEARCH BUSINESS WEEK AHEAD JUNE 27 FOR ALL IMAGES/File Photo

 

BANGKOK(Reuters) - Thai commercial banks aim to lend 100 billion baht ($3.19 billion) of soft loans by October to smaller businesses affected by coronavirus outbreaks, a banking group said on Tuesday, as the country deals with a third wave of infections.

 

The Southeast Asian country's latest outbreak has accounted for about 80% of the country's total infections and about 90% of its deaths.

 

The loan programme worth 250 billion baht was launched in late April to help small- and medium-sized businesses (SMEs) cope with the impact of the outbreak, which has slowed domestic activity.

 

The loans will be provided by the central bank through commercial banks.

 

"Banks are rushing to consider loan requests and expect a jump in lending over the next two weeks," Payong Srivanich, chairman of the Thai Bankers' Association, said in a statement.

 

That will make the group achieve its target of 100 billion baht lending in the first six months of the loan programme.

 

About 15 billion baht of loans has been approved so far to more than 5,000 SMEs, he added.

 

The soft loan programme is part of financial support measures approved in March which include another 100 billion baht of a so-called "asset warehousing" scheme to support debtors who are unable to repay loans.

 

-- © Copyright Reuters 2021-05-25

 

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[WineOh]

why is everything always conveniently planned for 4-6 months in the future here?

 

why is it never today, or tomorrow?

 

People are hungry now! 

[billd766]

Why on earth would any SME in trouble want to incur more debt, which they may never be able to pay back?

 

Of course if the banks foreclose on the business then it becomes the banks problem to sell the business to repay the debt.

[ed strong]

The soft loan programme is part of financial support measures approved in March which include another 100 billion baht of a so-called "asset warehousing" scheme to support debtors who are unable to repay loans.

 

Wonder what the repayment schedule and interest associated with these 'soft loans' ?

 

Essentially all this does is reduce the risk to the bank in terms of lending to business.

 

Check SCB share price increasing on this news!

[itsari]

14 hours ago, billd766 said:

Why on earth would any SME in trouble want to incur more debt, which they may never be able to pay back?

 

Of course if the banks foreclose on the business then it becomes the banks problem to sell the business to repay the debt.

If banks begin foreclosure that could be there own also in these unprecedented times.

[hotchilli]

15 hours ago, snoop1130 said:

Thai commercial banks aim to lend 100 billion baht ($3.19 billion) of soft loans by October to smaller businesses affected by coronavirus outbreaks, a banking group said on Tuesday, as the country deals with a third wave of infections.

 

[lujanit]

Good luck getting it back.

[billd766]

1 hour ago, itsari said:

If banks begin foreclosure that could be there own also in these unprecedented times.

Any decent bank management would do a risk assessment before handing over any money.

 

Some banks must still hold stuff from the 1997 Tom Yang Gung crash as an NPL.

 

Personally I wouldn't lend money to ANY business during these times of uncertainty, unless the full amount lent is covered with a cast iron guarantee, IN WRITING and signed with Prayuth's blood.

 

I still think it is a bit risky considering the amount of government U-turns lately.

[Cake Monster]

2 minutes ago, billd766 said:

Any decent bank management would do a risk assessment before handing over any money.

 

Some banks must still hold stuff from the 1997 Tom Yang Gung crash as an NPL.

 

Personally I wouldn't lend money to ANY business during these times of uncertainty, unless the full amount lent is covered with a cast iron guarantee, IN WRITING and signed with Prayuth's blood.

 

I still think it is a bit risky considering the amount of government U-turns lately.

It would be interesting to see the very latest and up to date figures on NPL and Special Mention Loans.

Both of which, I suspect are climbing quite rapidly.

[chalawaan]

The banksters are going to "help"!

What could posibly go wrong?

A business with no customers doesnt need a loan, it needs to shut down before more financial harm is done to the owner.