SME Bank's massive loan plan
The Small and Medium Enterprise Development Bank of Thailand (SME Bank) plans to grant loans of Bt31.5 billion this year, a major hike from last year's Bt20 billion, because it says commercial banks are being tougher in their extension of credit to small- and medium-sized enterprises (SMEs) amid the present economic gloom.
Senior executive vice president Chongchet Boonkerd said it made fewer loans than its target last year, because it was restructuring and promoting itself to the public. "As everyone knows, the Kingdom's economy is flagging this year. Hence, working capital is low, and most commercial banks do not magnify their credit facilities for those operators," he said. The bank is planning to increase its credit lending for SMEs, and this will be one factor driving the country's export performance. At present, the total value of the SME sector accounts for about 30 per cent of total gross domestic product. He said the bank's non-performing loans were about 47 per cent of total loans, slightly higher than last year's level. However, it has strategies to manage its bad debts. He declined to disclose details. Meanwhile, the SME Bank, in cooperation with the Industrial Promotions Department, granted loans totalling Bt3 billion to small- and medium-sized operators yesterday. Under the project, a credit facility of not more than Bt100 million is granted to each operator, who then pays only half of the regular rate for a project analysis. Chalida Ekvitthayavechnukul The Nation
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