SME Bank approves loans to 1,960 riot victims; Approval of new foreign firms down in May

BANGKOK, May 30 (TNA) – A total of 1,960 business vendors whose businesses were destroyed in blazes set by anti-government protesters more than a week ago have received combined loans totalling Bt1.29 billion from the Small and Medium Enterprise Development Bank of Thailand (SME Bank).

The loans were granted to vendors under the ‘smePower for a New Better Day’ sponsored by the bank between May 26-29, said Soros Sakornvisava, managing director of SME Bank.

Under a programme to enable entrepreneurs whose businesses were destroyed in the May 19 fires in the wake of the government’s security operation against anti-government protesters to carry on with their businesses, SME Bank has set aside Bt5 billion to assist small vendors. No interest will be charged in the first year, but it will be 3 per cent the following year.

According to Mr Soros, 4,401 vendors registered with the bank during the period and loans have already been approved for 1,960 of them for Bt1.29 billion. He said the loans are expected to be issued to the vendor victims in the next few months.

It is hoped that each vendor could generate monthly income of between Bt300,000-500,000 after receiving the loans and setting up new businesses.

Chantra Booranaruek, secretary-general of the Office of the Insurance Commission (OIC), said only 51 business owners whose businesses were destroyed in the fire set by anti-government protesters of the United Front for Democracy against Dictatorship in Bangkok were covered by insurance. Of those covered, only eight were covered for terrorism.

Mrs Chantra said OIC will meet insurance firm executives Thursday on speeding assistance from insurers. The destroyed firms uninsured for terrorism will also receive financial assistance.

In another development, only 14 foreign firms received permission from the Business Development Department to establish companies in Thailand in May, down 46 per cent from April. Their combined investment also fell by Bt384 million or 72 per cent, said Banyong Limprayoonwong, director-general of the department.

The sharp decline was attributed to political unrest in Thailand which impacted investor confidence, said Mr Banyong. (TNA)