The $100 million loan to TMB—formerly known as the Thai Military Bank--is part of IFC’s multi-phase Thailand Flood Response Strategy, which complements the government’s post-flood stimulus program by providing export-oriented businesses with funding through local banks. In the first phase, IFC will offer immediate liquidity to businesses in flood-affected areas, especially small and medium enterprises, helping them expand their operations, buy new machinery or hire workers.
“TMB is proud to partner with IFC as an intermediary in an endeavor to empower small and medium enterprises to operate with higher efficiency and increase their competitiveness,” said Boontuck Wungcharoen, TMB chief executive officer. “It enables businesses to do their part to improve the Thai economy through job creation, income generation, and social development.”
Thailand’s export-oriented economy rebounded strongly in the first quarter after shrinking late last year because of the floods. However, the World Bank says the global economic slowdown could reduce Thai exports this year.
“IFC’s support to TMB reflects our countercyclical role in helping address financing gaps for small and medium enterprises,” said Karin Finkelston, IFC Vice President for Asia Pacific. “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,” she said.