Thai PM urged banks to lower interest rates to provide relief to SMEs

Thai PM on interest rate: Thailand's Prime Minister, Srettha Thavisin, has taken proactive steps to address economic concerns by engaging with the country's leading financial institutions. Thavisin recently urged Thailand's four largest lenders - Bangkok Bank, Kasikornbank, Krungthaibank, and SCBX - to lower their interest rates, to provide much-needed relief to small and medium-sized enterprises (SMEs) and stimulate economic growth.

Speaking to reporters, Thavisin highlighted the challenges faced by vulnerable groups, particularly SMEs, who often grapple with the burden of high interest rates. By calling upon these major banks to consider reducing their rates, the Prime Minister signalled a commitment to fostering a more supportive financial environment for businesses across the nation.

Thavisin's initiative comes amidst ongoing efforts to bolster Thailand's economic resilience in the face of global uncertainties and domestic challenges. While acknowledging the strength of Thai financial institutions, the Prime Minister emphasised the importance of ensuring that the benefits of a robust financial sector extend to all sectors of the economy.

The move also reflects the government's broader strategy to encourage lending and investment, particularly in key sectors that drive economic development and job creation. By facilitating access to affordable credit, policymakers aim to empower SMEs to expand their operations, innovate, and contribute more substantially to Thailand's economic prosperity.

With Reuters Inputs