IFC Helps Finance Flood-Hit Thai Exporters

By Jamaluddin Muhammad BANGKOK (Thailand), May 30 (Bernama) -- International Finance Corporation (IFC), a member of the World Bank Group, is providing financing to a local bank to increase lending to small-and medium-scale exporters hit by last year's floods. Vice-President for Asia Pacific Karin Finkelston said the move would also help them revive their business and create jobs at a time when the US dollar liquidity was tightening. The US$100 million (about RM300 million) loan to TMB Bank was part of IFC's multi-phased Thailand Flood Response Strategy, which complements the government's post-flood stimulus programme by providing export-oriented businesses with funding through local banks. In the first phase, IFC will offer immediate liquidity to businesses in flood-hit areas, especially small and medium enterprises (SMEs), helping them expand their operations, buy new machinery or hire workers, said IFC in a statement. "TMB is proud to partner with IFC as an intermediary in an endeavor to empower SMEs to operate with higher efficiency and increase their competitiveness," said Chief Executive Officer Boontuck Wungcharoen. Thailand's export-oriented economy rebounded strongly in the first quarter after shrinking late last year because of the massive floods. "IFC's support to TMB reflects our counter-cyclical role in helping address financing gaps for SMEs," said Finkelston. "As a leading bank in Thailand with a strategic focus on small companies, our partnership with TMB will deliver critical support for these businesses amid challenging global market conditions, helping them grow, create jobs and sustain economic recovery," he said. -- BERNAMA