Currency and Interest Rate Outlook

K KAŞIKORNTHAI Relief Measures for COVID-19 Impacts ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK Measures from Government, BOT, and SEC for Businesses and Individuals Market Stability and Liquidity (Government, BOT, and SEC) For Businesses ■ Financial Markets: BOT, MOF, & SEC o Bt1trn Fixed Income Fund: BOT set up a special facility to provide liquidity for mutual funds. Commercial banks purchasing investment units can use the eligible underlying unit trust as collateral for liquidity support from the facility o Bond Markets: BOT will purchase bonds to provide liquidity and lessen volatility in the bond market ■ Corporate Bond Stabilization Fund (BSF): BOT • Bt400bn in bridge financing to high-quality firms with bonds maturing during 2020-2021 at higher-than- market 'penalty' rates. (Issuers must raise majority of funding through other means such as bank loans or capital increase) ■ Reduce FIDF Fee: BOT • FIDF fee cut from 0.46% of deposit base to 0.23% for 2 years, supporting lower reference lending rates ■ Tax Relief: Government o Deduct 3 times for salary costs for SMEs that retain their employees o Speed up VAT refunds to exporters of domestic goods to 15 days (online) or 45 days (filing manually) Soft Loans (Government and BOT) For Businesses (Bt680bn) ■ Soft Loans for SMEs: Government and BOT • Gov't: Bt150bn worth of soft loans for SMEs, via GSB, at 2% for 2 years 。 BOT: Bt150bn worth of soft loans for SMEs with credit lines not over Bt500mn (old customers), at 2% for 2 years and 6-months interest free* : Bt250bn worth of soft loans for SME with credit lines not over Bt500mm (old customers) or Bt20mn (new customers) for 5 years with interest not over 5% (0% for the first 6 months and 2% for 2 years) : Bt100bn asset warehousing programme ■ Soft Loans for Entrepreneurs Registered with the Social Security Office: Government o Bt30bn worth of soft loans at 3% for 3 years For Individuals (Bt80bn) ■ Soft Loans for Individuals: Government o Bt40bn worth of soft loans at Bt10,000 per person at 0.1% (no collateral) via GSB & BAAC (Year 2020) o Bt20bn worth of soft loans at Bt10,000 per person at 0.35% (no collateral) via GSB & BAAC (Year 2021) o Bt20bn worth of soft loans at Bt50,000 per person at 0.35% (with collateral) via BAAC (Year 2020) For Individuals ■ Household: Others (Government) o Reduce water and electricity bills for March - May 2020, February - March 2021, May-June 2021, July- August 2021, and refund meter fees ■ Work Force: o 3-month payment of 62% of wages for 2020 and 50% of wages for 2021 to people under SSF, if their employer closed their business or if the government ordered business operations suspended o Reduce SSF contribution to 3% for January 2021 and 0.5% for February - March 2021 o 3-month Bt5,000 monthly payments to workers not covered by the SSF in 2020 o Give Bt9,000 (Bt7,000 and Bt2,000) for February - June 2021 to workers not covered by SSF o Give Bt6,000 (B4,000 and Bt2,000) for March - June 2021 to workers covered by SSF (Section 33, We Love Each Other program) ■ Economy and Health: • Tax exemption on risk payments for medical workers o Bt80-100bn from ministries to use as stimulus funds ■ B500bn borrowing decree in 2021: o Bt30bn for health-related plans • Bt300bn for relief measures, including workforce o Bt170bn for economic recovery plans Notes: BOT = Bank of Thailand; SSF=Social Security Fund; GSB = Government Saving Bank; BAAC = Bank for Agriculture and Agricultural Cooperatives; SFIS = Specialized Financial Institutions The BOT provides soft loans at 0.01% to banks to lend to SMEs; amount to not be over 20% of each SME's outstanding loans; government pays for first 6-months interest; in case of NPLs, the government will support 60-70% of additional reserves for loans - On October 16, 2020, the BOT extended the registration period for another six months and also allowed banks to provide soft loans to the listed companies in the Market for Alternative Investment (MAI) Source: MOF, BOT and KResearch บริการทุกระดับประทับใจ K ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK KASIKORNTHAI Overview of Relief Measures for COVID-19 Impacts ■ BOT opted to switch from blanket measures to proactive and more targeted assistance 1Q20 Blanket Measures 2Q20 BOT Business Feb-20 Issued proactive measures to assist borrowers and relax pre-emptive debt Apr-20 Individual Loan Classification Guidelines restructuring rules Mar-20 Issued minimum guidelines covering various types of loan products (inc. the first phase of relief measures for retail) Launched debt holiday for SMEs for 6-month period Jun-20 Implemented second phase of relief measures to assist retail borrowers 3Q20 Sep-20 Launched DR BIZ to help expedite debt restructuring for multi-creditor businesses Sep-20 Implemented debt consolidation 4Q20 Oct-20 Issued debt restructuring guidelines for SMEs after debt holiday has ended 1Q21 Jan-21 2Q21 Targeted Measures Extended current measures to help borrowers affected by new round of COVID- 19 Feb-21 Rolled out credit card and personal loan Debt Mediation Fair for both NPL and non-NPL status Effective Period of BOT relief measures Apr-21 Issued two new measures* to support business recovery and transformation post-COVID-19 Jun-21 • Released guidelines for debt forbearance and restructuring Apr-21 Changed the methods for calculation of default interest and application of debt repayment proceeds May-21 • Issued third phase of relief measures for retail borrowers 3Q21 4Q21 Jul-21 • Provided a two-month debt holiday for individuals and SMEs suffering a direct impact from the latest lockdown The BOT temporarily allows banks to relax loan classification for two years for loans in suspension period of relief measures After debt holiday ended, BOT allowing freeze of loan stages in 2 cases: Oct 20 Dec 20 May Oct 20 Debt holiday 6-month period, Ended on Oct 22,2020 1) SMEs who are in debt restructuring process Oct 20 Dec 21 2)SMEs who cannot forecast their cash flow clearly** Note: According to the Emergency Decree on Financial Rehabilitation and Recovery to support Businesses affected by COVID-19 (B.E. 2564), dated April 19, 2021. (i.e. soft loans and asset warehousing) Source: Bank of Thailand (BOT) บริการทุกระดับประทับใจ 129 130

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