KBank continues to help customers after end of debt holiday program

Stocks and Financial Services Press Releases Thursday October 22, 2020 11:58
Bangkok--22 Oct--Kasikorn Bank

KASIKORNBANK (KBank) will continue to provide assistance to its customers after the debt holiday program comes to an end on October 22. It notes that 81 percent of debtors could resume their debt repayment as usual, while the rest may still be unable to make their debt repayment due to liquidity constraints. Therefore, KBank is preparing to aid these cash-strapped clients based on their needs via multiple measures including reduction of monthly debt repayment, suspension of principal payment only, suspension of both principal and interest payment, as well as extension of new loans to ensure their business continuity.

Mr. Krit Jitjang, KBank President, said that a large number of the Bank’s business and retail customers have been facing financial stress caused by the COVID-19 pandemic. Since April, KBank has provided assistance to its customers to ease their debt burdens, including reduction of monthly debt repayment, suspension of principal and interest payment, and the offering of financial assistance for liquidity enhancement. Up to now, our business and retail customers have been granted a combined 860,000 million Baht through Phases 1 and 2 of assistance measures. Of that amount, 360,000 million Baht was offered via the debt holiday program, which is set to expire on October 22. KBank has put in place assistance measures for customers participating in the debt moratorium program so that they can keep running their businesses. We have closely enquired with each of our customers regarding their liquidity or cash flow. Having met approximately 100,000 customers, we have found that around 81 percent of them, largely those in the consumer products industry, can now resume debt repayments as usual. However, another 18 percent of them, primarily in the tourism industry, are still in need of assistance – while the remaining customers have closed their businesses.

KBank continues to help customers who cannot resume debt repayment, with an emphasis on tackling their specific problems rather than offering general assistance. KBank’s assistance measures, therefore, are varied in alignment with industrial conditions and the nature of our customers’ businesses. They include: 1) Monthly installment payment reduction, and suspension of principal and interest payments to help reduce customers’ expenditures; and, 2) Provision of funding to boost customers’ liquidity, such as extending new loans, with a maximum limit of 100 million Baht from financial institutions participating in the Soft Loan Plus program under the Portfolio Guarantee Scheme to their corporate customers; the loan is guaranteed by the Thai Credit Guarantee Corporation (TCG), with loan term of up to seven years, and suspension of principal payment for a maximum period of two years.

Mr. Krit said in closing that, while KBank has issued assistance measures which serve to relieve debt burdens at present, the interest incurred each month throughout the debt suspension period will continue to weigh upon debtors in the long run. Therefore, those who possess sufficient income to pay off their debts should manage to do so once measures have run their course. Furthermore, business operators’ adjustments to find new markets and control costs will remain essential.


Latest Press Release

KBank wins "Thailand's Top Corporate Brands 2020" award for the fourth consecutive year

Ms. Kattiya Indaravijaya, KBank Chief Executive Officer, recently represented KBank to receive the "Thailand's Top Corporate Brands 2020" award from Professor Dr. Bundhit Eua-arporn, President of Chulalongkorn University (CU), for the fourth consecutive...

SET welcomes telecoms, IT and electrical installation service provider "JR" on Nov 30

The Stock Exchange of Thailand (SET) will list J.R.W. Utility PLC, a one-stop installation subcontractor for telecommunications, information technology, and electrical systems, on November 30, under the ticker symbol "JR". The company has a market...

Asia Pacific must act now to stimulate regional economic recovery

A new report launched today by PwC, Asia Pacific's Time, explores what the region needs to do now, to build on the success of the last three decades of economic growth, and calls on governments, businesses and society to act now in order to ensure the...

KTC takes home "Thailand's Top Corporate Brand Value 2020" award under the Financial Business category in a 4-year streak.

Mr. Rathian Srimongkol (Left), President & Chief Executive Officer, "KTC" or Krungthai Card Public Company Limited, went on stage to receive the Thailand's Top Corporate Brand Value 2020 award for the Finance Business category from Professor Dr....

Krungsri aims to become ASEAN financial powerhouse Enhancing international money transfer service capability to capture all customer segments

Krungsri (Bank of Ayudhya PCL) aims to become a major ASEAN financial powerhouse driven by a continuous improvement of international money transfer service capability to reinforce its leadership in digital banking and innovation. The new service...

Related Topics