BANGKOK, March 6 – Thailand’s Finance Ministry approved a six-month rehabilitation plan for the debt-stricken Small and Medium Enterprise Development Bank (SME Bank), a senior official said Wednesday.
Finance permanent secretary Areepong Poocha-um said three ad hoc committees were set up to work on measures to increase the bank’s revenue, reduce its spending, manage non-performing loans (NPL), reorganise the management system, improve regulations and the working process, and follow up on the rehabilitation plan.
The key responsibility is to tackle the NPLs, he said, adding that the bank will have to undergo a three-year restructuring plan.
Mr Areepong stood firm that the SME Bank remains stable and that future growth is possible.
The SME Bank is authorised to extend loans as usual and it is expected that the bank will this year offer Bt19 billion in loans, representing 5-8 per cent of the total Bt96 billion loans, he said.
SME Bank chairman Naris Chaiyasutr said the bank will, according to this year’s plan, reduce its NPLs by Bt10.7 billion from the total Bt32 billion while its capital adequacy ratio has increased from 1 per cent to 5 per cent.
The bank will make a turnout from last year’s loss to a Bt100 million profit this year, he said.
