BoT sees no need to ease strict lending rules to help entrepreneurs

BANGKOK, Oct 19 – Bank of Thailand (BoT) Deputy Governor Krirk Vanikkul on Monday insisted that the central bank saw no need to ease the strict lending rules imposed by commercial banks to help entrepreneurs affected by the stronger baht.

Speaking in response to the private sector call for a relaxation of the lending rules, he said the central bank has not issued any regulations that obstruct operations of the business community.

Relief measures taken by the Finance Ministry to help entrepreneurs affected by the baht appreciation are effective enough, he said, adding that the ministry managed to help small entrepreneurs to hedge against the foreign exchange risks.

Because of this, the central bank saw no need to revise any regulations.

Mr Krirk said the bank did not expect financial institutions tasked to help the baht surge-affected entrepreneurs to encounter financial trouble.

Instead, he thought, the financial assistance, if persistent, would instead fuel a burden to the Finance Ministry. (MCOT online news)

-- TNA 2010-10-19

Another Ostrich attitude from BoT. Without SME's and entrepreneurs the country cannot grow as they provide around 80% of the employment.