GSBank, commercial banks to roll out soft loans to prop up SMEs

BANGKOK, 18 July 2009 (NNT) – The Finance Ministry is about to roll out soft loans worth 50 billion baht through the Government Savings Bank (GSBank) and other local commercial banks in an effort to help prop up small and medium enterprises (SMEs).

Following his discussion with business sector in Chiang Mai, Finance Minister Korn Chatikavanit revealed most SME entrepreneurs had been deterred to gain an access to loans.

To solve this problem, Mr. Korn has assigned the GSBank to release loans with low interest rates or so-called soft loans, worth 25 billion baht and with an interest rate of 0.1 percent, to the entrepreneurs. He added other loans worth 25 billion baht would be released by local commercial banks.

Mr. Korn said the interest rate and implementation period and more details would be discussed with the banks. He added the ministry would convene a meeting with executives from all state financial institutions in an effort to make it clear on their roles. He said Deputy Prime Minister Korbsak Sabhavasu would also attend the meeting.