Bangkok: Krungthai Bank has announced a reduction in its lending interest rates with the objective of alleviating the debt burden on households and businesses. The new rates, which will come into effect on March 2nd, are aimed at enhancing liquidity, maintaining employment, and supporting the sustainable recovery of the Thai economy.
According to Thai News Agency, Ms. Saranya Vejakul, the Chief Financial Officer of Strategy and Resources Management at Krungthai Bank, emphasized the need for this measure in light of the country's economic growth falling below its potential. She cited various challenges, including a large informal economy and high household debt, which have been impacting business competitiveness and household livelihoods. The revised rates include a reduction of the overdraft facility rate (MOR) to 6.270% per annum, the term loan rate (MLR) to 6.300% per annum, and the retail loan rate (MRR) to 6.845% per annum. These changes are aligned with the Monetary Policy Committee's (MPC) policy to promote economic recovery.
Krungthai Bank has reiterated its commitment to going beyond being just a financial institution by continuously supporting its customers and the public. The bank aims to alleviate financial burdens, provide sustainable debt resolution, and strengthen entrepreneurs, especially SMEs, to adapt to the new global trade order. This support includes backing government measures such as the 'Quick Debt Consolidation, Move Forward' project for non-performing loan borrowers with loan amounts not exceeding 100,000 baht. The bank is also driving economic growth under the 'Reinvent Thailand: A New Dynamic for the Thai Economy' initiative and offering low-interest loan programs like Soft Loans and the 'SMEs Credit Boost' loan guarantee program to increase access to capital. Furthermore, Krungthai Bank offers financial products such as the Sustainable Debt Consolidation Loan for Civil Servants and the Bill Payment Loan, which do not require collateral. These efforts are in line with the bank's vision of 'Krungthai: Alongside Thailand Towards Sustainability,' aiming to create quality, inclusive, and sustainable long-term growth.