BANGKOK(NNT) – Good news for the general public and SMEs as the Bank of Thailand (BOT) has ordered commercial banks to revise their interest rates, and the fees they charge for their financial products and services including ATM and debit card fees, to help reduce the burden borne by customers.

The BOT now recommends commercial banks impose advance refinance fees on personal loans, with SME loans to be based on the remaining loan balance, as opposed to the entire loan amount, as well as offering a period of grace where fees are not imposed.

As for housing loans, SME loans, and personal loans, the interest rates for default cases will now be calculated on the amount due, as opposed to the remaining loan balance. A period of Grace will be offered to customers facing extraordinary circumstances. These new interest rate guidelines are effective from now until 31st December 2021.

Banks are now required to return customers annual ATM and debit card fees in cases of cancellation, by refunding the unused portion of the fee based on the time of year in all cases. With the issuance of replacement cards or pins, no fee should be collected unless there are significant costs associated with the replacement. This directive is effective indefinitely.

BOT Governor Veerathai Santiprabhob said today the change in guidelines will help boost customer confidence in financial companies and the overall monetary system of the country. The Bank of Thailand will be asking the banks to revise their current interest rates and fees to reflect true costs, reduce the customers’ burden, reduce redundant fees, and fully disclose fees associated with other products and services.

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BANGKOK(NNT) – Since the Prime Minister and Defense Minister, Gen. Prayut Chan-o-cha, commented on the difficulty of solving economic problems, his statement has drawn comment from different sides.

The Finance Minister, Uttama Savanayana, posted a message on his personal Facebook page, saying the government is actively working to improve the economic situation in the country even though it is facing a string of challenges, some of which are external factors, such as the ongoing trade war between the world’s economic superpowers.

All sides are working together to manage different economic issues, such as the baht’s appreciation, and projects to strengthen the domestic economy while minimizing the impact of the global economic slowdown.

The Finance Minister recently had a meeting with both the Prime Minister and the Deputy Prime Minister, Dr. Somkid Jatusripitak, to seek additional measures to assist small and medium-sized enterprises (SMEs), following an agreement between the Ministry of Finance, the Thai Bankers’ Association and the Thai Credit Guarantee Corporation (TCG).

The measures will strengthen some 100,000 SMEs and improve their ability to access financial resources. The SMEs are divided into three categories, as follows:

The first group is some 50,000 SMEs that are facing difficulties in accessing funding resources; the TCG will improve their credit guarantees. The second group is some 20,000 SMEs with loans that have almost become non-performing loans (NPLs). The TCG will improve their fund and debt structures, while financial institutions will provide them with additional loans. The third group is some 30,000 SMEs with tight financial liquidity. State-run banks, such as Krungthai Ban (KTB), the Government Savings Bank (GSB) and the SME Development Bank, will offer loans to increase financial liquidity.

These measures will be proposed to a meeting of the cabinet ministers soon, as they will improve the SMEs’ potential to access financial resources, with a budget allocation of about 100 billion baht and support from financial institutions and the TCG.

The government has prepared measures to enhance the competitiveness of the SMEs, as it recognizes that they are an important economic driver of the country this year.

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BANGKOK (NNT) – Transport Minister Saksayam Chidchob, who chaired a meeting on the 2021 budget with eight agencies and six state firms attached to the Ministry of Transport, said the ministry has applied technology to the administration and management of those agencies and state firms, thus calling for an appropriate, reduced budget for personnel.

Projects which may need a budget of one billion baht or more should be considered in scrupulous fashion, to prevent financial problems while being implemented or having an adverse effect on the people. The agencies and state firms involved are yet to submit details of planned expenditure to the Ministry of Transport, but must do so by January 14.

The Ministry of Transport’s 514.53 billion baht budget for fiscal 2021 includes 124.1 billion baht in regular expenditure and 390.43 billion baht in investment funds. Of that total, 66% is for land transport projects, followed by 27% for rail transport projects, 3.6% for air transport projects and 2.4% for water transport projects.

Meanwhile, the Transport Minister has instructed the Highways Department and the Rural Roads Department to integrate measures to overcome bottleneck traffic congestion, while the Office of Transport and Traffic Policy and Planning is to integrate operations with those of other agencies and relevant units of the Ministry of Transport, and set guidelines for the administration and management of traffic systems for the convenience and safety of the people.

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