The Finance Ministry has approved a capital increase of Bt3 billion each for the stateowned Small and Medium Enterprise Development Bank and Islamic Bank.
The recapitalisation is to rehabilitate the two banks’ business and restructure their nonperforming loans, said permanent secratary Areepong Phuchaum Bhoochaoom.
There will be two phases to the move. The first phase will inject Bt550 million into SME Bank and Bt450 million into Islamic Bank this year. Next year, Bt2.45 billion will be injected into SME Bank and Bt2.55 billion into Islamic Bank, he said.