PTT to adjust loan policy

The changes follow lending of just Bt871 million through financial institutions and Bt60 million through PTT in the past three years, according to executive vice president Nattachart Jaruchinda.

"This was despite interest from transportation companies, particularly small ones, to tap the loans," he said.

"However, they want the conditions relaxed. For example, the lending should not be linked to the Central Credit Bureau and the interest rate should be cut. They also want a relaxation of the guarantee conditions, as their associations should be allowed to be the guarantor. PTT is considering all these requests," Nattachart said.

For higher flexibility in loan extension, PTT also plans to make the loans itself.

It has set aside Bt2 billion to lend to taxis that are switching from liquefied petroleum gas to natural gas.

Converting a taxi to run on natural gas would save LPG consumption of  1 tonne per month.

To promote natural gas, the Energy Conservation Fund has recently endorsed a Bt2-billion budget to transportation companies to adjust their vehicles to run on gas and purchase new NGV-driven vehicles.

The second-phase of the scheme will charge 0.5 per cent per year in interest and aim to convert at least 3,000 vehicles, which could save fuel consumption of 100 million litres a year or substitute oil imports by at least Bt3.68 billion a year.