Banking/EXIM rate cut

Editorial staff

EXIM Thailand announces to cut prime rate by 0.25 % to 6.35% per annum, the lowest in the system for 6 months in alignment with government policy.

Rak Vorrakitpokatorn, president of Export-Import Bank of Thailand (EXIM Thailand), said that EXIM Thailand has announced to cut prime rate by 0.25% per annum in its prime rate from 6.60% to 6.35% per annum (the lending rate that EXIM Thailand uses for general customers and SMEs, equivalent to the Minimum Retail Rate (MRR) of commercial banks).

This marks the lowest lending rate for prime retail customers in the system and will be in effect for 6 months, aligning with the Prime Minister’s policy to assist vulnerable entrepreneurs and SMEs.

Rak Vorrakitpokatorn

The new rate will be effective from April 30, 2024. This latest prime rate reduction follows a 0.15% per annum reduction on April 18, 2024, as a gift to businesses during the Songkran festival. Combined, these reductions total 0.40% per annum, helping alleviate the burden on businesses, particularly vulnerable groups and SMEs.

This aligns with EXIM Thailand’s mission to support Thai entrepreneurs in maintaining liquidity, alleviating debt and business costs, and enabling them to adapt and compete sustainably on the global stage amidst Thailand’s slowing economic growth and high interest rates in the financial market.

The Thai Bankers' Association (TBA) said in a statement on Thursday (April 25) that the lenders would slash the minimum retail rate for loans by 25 basis points for vulnerable groups for a period of six months. Its move was aimed at responding to the government request to assist small businesses.

According to TBA statement, it said the bank’s rate cut would be for both individual and small and medium enterprises customers and would help reduce their interest burden and support their recovery.

Prime Minister Srettha Thavisin on April 23 asked Thailand’s four largest commercial banks to lower their lending rate.

The minimum retail rate for loans ranges from 6.5% to 9% among Thai commercial banks.