7 June 2021
Bangkok (7 June 2021) -- Krungsri (Bank of Ayudhya PCL) responds to the Bank of Thailand's (BOT)’s measures to expedite assistance to business customers affected by COVID-19 by having teams of relationship managers proactively reach out to the affected customers, ready to provide low-interest loans to increase liquidity for the business sector.
Mr. Seiichiro Akita, Krungsri President and Chief Executive Officer, said that “Krungsri is aware of the issues and challenges arising from the COVID-19 crisis, which continues to have a broad impact on all sectors. Krungsri has been continuing to assist all groups of customers through various measures implemented by both the Bank and the government’s policies. In May 2021, Krungsri issued additional customer assistance measures (phase 3) covering all customer groups. For business customers, the Bank has been proactively sending teams of relationship managers to regularly stay connected with them, monitor their situations, and provide appropriate assistance to customers who have been affected with COVID-19 both directly and indirectly. So far, Krungsri has already assisted over 30,000 business customers, with a total loan value of more than 200 billion baht.”
“Nonetheless, following recent discussions with the Bank of Thailand and related parties, a large number of customers remain vulnerable and in need of assistance. Particularly, business customers still require financial liquidity to support their businesses and maintain the employment of their staff so that they can overcome the crisis and return to business in the future. Therefore, Krungsri is ready to respond to the Bank of Thailand's measures by providing assistance through Rehabilitation Measures, following the 2021 Emergency Decree on the Provision of Assistance and Rehabilitation to Business Operators Affected by the Spread of the COVID-19 Pandemic. The program provides low-interest loans, with Thai Credit Guarantee Corporation (TCG) assisting in ensuring that more potential business customers have access to loans.”
The Bank's Rehabilitation Measures aim to assist both existing and new business customers, both as legal entities and as individual entrepreneurs. Existing business customers can apply for a loan of up to 30% of their credit limit, while new business customers can apply for a loan of up to 20 million baht, which includes all credit lines from all financial institutions. For the first two years, Krungsri offers a special interest rate of 2%. In addition, due to government assistance, no interest will be charged for the first six months. In total, the average interest rate over the next five years is no more than 5% per year. Business customers can also pay in installments for up to ten years, and the Bank will not charge any transaction fees on loans in the Rehabilitation Measures.
Business customers who have been severely impacted by the pandemic can participate in the Asset Warehousing Program, by transferring assets as collateral to the Bank to reduce their debt burden. Customers can, however, rent their assets to continue their business and buy them back in 3-5 years. The Bank will also waive the asset rental fee, relieving the burden of temporary financial costs while maintaining their own assets and increasing the businesses' chances of survival.
Aside from the BOT's measures, Krungsri also provides additional measures to assist business customers the same way that the Bank has always been assisting them since the pandemic began in 2020. Depending on the types of businesses, these measures came in various shapes and sizes, such as suspending principal payments, freezing installment payments, reducing loan payments, reducing interest rates, and modifying loans. Many business customers have applied for assistance from both the BOT and Krungsri measures, which are being expedited as soon as possible. Aside from financial assistance, the Bank also offers business customers opportunities to expand their businesses – which is critical during the COVID-19 pandemic, when customers are struggling to maintain sales momentum – by organizing business matching activities with local and international entrepreneurs, through a collaboration with Mitsubishi UFJ Financial Group (MUFG), which has customer networks across the globe.
Krungsri is determined to assist customers across all segments to ensure that the market dynamics continue to progress. Apart from business customers, Krungsri has been assisting retail customers i.e. personal loan customers, mortgage customers or mortgage refinancing customers, auto loan customers, and credit card customers through various relief measures simultaneously. To date, Krungsri has assisted 228,984 retail customer accounts (as of March 31, 2021).
Business customers interested in participating in the program to assist those affected by the COVID-19 crisis should contact Krungsri's relationship managers or the Krungsri Business Center at 02-2966262 or 02-6262626.