LENDING & CREDIT | Cesar Tordesillas, Thailand

KTB eases payment terms, boosts 2H09 lending

KTB anticipates approving loans of not less than US5.2 billion in the second half of the year.Mr. Prasert Thiranakanat, First Executive Vice President, Managing Director, Credit Risk Transaction Management Group, Krung Thai Bank PCL. disclosed that the bank's credit risk management in the first half of the year has approved loans of US$4.69 billion to customers in various business sectors by existing criteria which are not stricter. Although some customers' cash flow estimates are weakening due to economic recession, the Bank has eased the terms and conditions for customers with good potential by considering long-term serviceability.The bank will continue to ease loans payment terms for customers with good potential by considering their serviceability in the future. In addition, the Bank introduces the Business & Credit Model in credit approval process to cater for more lending in the latter half of the year after having seen better signs of economic recovery.Such Model will indicate business risk, comparison of financial data to business sizes, strengths and weaknesses as well as average financial ratios of each business to help expedite. Moreover, the Bank has set the target to spend only three days in completing credit risk management.Thiranakanat believes that volume of credit consideration and approval will be more in the second half than the first half since the global economy is picking up, US unemployment is decreasing, and financial institutions are getting stronger. Moreover, China has adjusted its international reserve management policy by spending on commodities such as construction materials, thus boosting demand in the global market. As for electronic and automobile businesses, new cars are manufactured to substitute for decreasing stock while housing business enjoys higher demand. According to Thiranakanat, all these bring about positive effects to the national economy.

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