Thai central bank chief says wants to boost credit access for SMEs
THAILAND’S central bank said on Thursday (Aug 8) it is looking at how it can reduce credit risks for small and medium-sized businesses (SMEs) so they can get better access to loans given their importance to the economy.
The Bank of Thailand (BOT) will promote an ecosystem that will help reduce costs for SMEs to access loans at reasonable interest rates, governor Sethaput Suthiwartnarueput told a seminar, adding it also wanted a flexible loan guarantee mechanism.
“SMEs are the heart and important force of the country,” he said.
Finance Minister Pichai Chunhavajira has said he is more worried about people’s access to credit than the level of interest rates.
Sethaput did not address interest rates in his remarks, which come less than two weeks before the next policy review on Aug 21.
Despite government pressure to ease monetary policy to spur growth, the BOT held its key interest rate steady at 2.5 per cent for a fourth straight meeting in June, saying the level was consistent with the economy and inflation outlook.
Last month, Sethaput said there was no need currently to cut the benchmark rate but the central bank was ready to adjust it if the outlook shifted.
South-east Asia’s second-largest economy grew 1.5 per cent in the first quarter from a year earlier, slowing from the 1.7 per cent growth in the prior quarter.
The BOT has forecast economic growth of 2.6 per cent this year and 3 per cent in 2025. Last year’s 1.9 per cent growth lagged regional peers. REUTERS
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