SME D offers relief to clients hit by virus

Almost 12,000 debtors who owe total loans of 20.5 billion baht to state-owned Small and Medium Enterprise Development (SME D) Bank were hurt by the Covid-19 spread, says the head of the bank.

The bank had 11,894 SME customers, most of them tourism operators or businesses related to tourism, suffer from the virus outbreak as of March 5, said Nartnaree Rathapat, managing director of SME D Bank.

SME D Bank sent its staff to survey impacts from the epidemic on its customers, closely monitor them and invited them to participate in the bank’s measures to alleviate their financial burden.

Tourism and related businesses including hotels, accommodation, restaurants, tour guides and souvenir shops have been directly affected by the coronavirus outbreak. Its customers have sought fresh loans amounting to 565 million baht as working capital from the bank, she said.

The bank’s relief measures not only help cut customers’ expenses and improve liquidity, but also prevent their debt from turning sour, said Ms Nartnaree.

The Covid-19 outbreak has battered the tourism sector, which had been a bright spot for years.

The National Economic and Social Development Council recently cut forecasts for 2020 economic growth to 1.52.5% from 2.7%-3.7% made on Nov 18 last year, while the Bank of Thailand is scheduled to downgrade its forecast of 2.8% on March 25.

Amid the outbreak, most research houses have trimmed their economic growth forecasts for this year to below 2%, while Kasikorn Research Center slashed its outlook to 0.5% on the expectation the coronavirus epidemic will wipe 410 billion baht off tourism receipts.

SME D Bank’s relief measures comprise a grace period for principal payment of up to 12 months for those directly ravaged by the outbreak and up to six months for those indirectly affected; and a rescheduled payment period and loan guarantee extension for another five years to those whose debts are guaranteed by the Thai Credit Guarantee Corporation under portfolio guarantee scheme phases 5-7 without additional fees. The bank is also offering loans at 3% per year for the first three years to juristic persons and 5% per year to individuals. Juristic entities are entitled to up to 1 million baht each from SME D Bank, while individuals can seek up to 500,000 baht.