Banks raise interest rates on loans and deposits SMEs exacerbate costs, risk bankruptcy
On 3 June, Chatchai Sirilai, manager of the Bank for Agriculture and Agricultural Cooperatives (BAAC), revealed that the Monetary Policy Committee (MPC) meeting was unanimous in raising the policy rate by 0.25% per annum From the policy interest rate of 1.75 % per annum to 2.00% per annum on 31 May, 2023 and with immediate effect The BAAC announced an increase in the deposit interest rate of 0.05-0.50% per annum, together with raising the interest rate on all types of loans by 0.10 -0.25% per annum, including the interest rate for main customers (MRR) of 6.875%, up 0.10% to 6.975% per annum, the interest rate for main institutional and legal customers (MLR) increased from 5.375%, 0.250% to 5.625% per annum, and the interest rate on overdrafts (MOR) of 6.750%, an increase of 0.125% to 6.875% per annum, effective from 6 June 2023. At the same time, the BAAC is prepare measures to take care of and solve the debt problems of farmers, affected customers. affected by COVID-19 and support recovery during economic conditions that tend to improve, including measures to improve debt restructuring Vocational recovery measures Measures to cover cut flowers and measures to cover the start of the installment adjustment Consultation on debt management inside and outside the system Encouraging clients to manage their debts through a pay less, pay more approach, together with incentives through returns or reduced interest rates for those who pay their debts. Along with adding capital through loans with low interest rates to improve liquidity in spending and investments, such as community business loans for creating Housing Interest rate of 0.01%, SME loans, strengthening and career building dream loans Interest rate of 4% and Green Credit loans with interest rates of MLR/MRR, etc.
Ms Prapassorn Rangsiroj, President of the Thai Street Food and Restaurant Association, said that the MPC has raised the policy interest rate by 0.25% to 2%, making banks Adjust the interest gradually accordingly. This affects operator costs. In particular, small entrepreneurs (SMEs) will be greatly affected because it is an unavoidable cost of business. In addition, the past It is still difficult for small businesses to recover from the COVID crisis. Including some businesses that are unable to move forward. Even now the economy is going to be more normal. But the recovery did not happen throughout Thailand, so the issue of the impact still exists among small entrepreneurs who have not returned to normal conditions.
“Previously, the share of doing business has been divided into 60% profit and 40% cost, which allows the business to operate continuously. But when the cost of various businesses has gradually increased in almost every aspect from the original business share to change to 50% cost and 50% profit until now when the cost has not decreased at all and not the economy has clearly grown. Making a business profit now only 20-30% is still very difficult amid rising costs As a result, the business fell off high,” said Ms Prapassorn.