State banks must lend more to ease liquidity crunch

 He said that as the amount should be disbursed in April as the soonest, there should be more measures to ease liquidity crunch in the business sector.

 "I believe that all state financial institutions are ready for loan extension. So far, their lending has been growing continually, exceeding 100 per cent of their deposits, against 95 per cent among commercial banks. If the loan extension continues, the economy would keep expanding. This is one of ad-hoc measures," he said.

  Korn will discuss with Prime Minister Abhisit Vejjajiva and Deputy Prime Minister Korbsak Sabhavasu during Dec 27-28 on additional funds to be injected into the system, aside from the Bt100 billion budget. Short-term measures would be launched late January, on hope that the 2009 gross domestic product would grow more than the Fiscal Policy Office's 0-2 per cent forecast.