Currency and Interest Rate Outlook

K KASIKORNTHAI Relief Measures for COVID-19 Impacts (Continued) For Businesses ■ Loan Payments for SMEs: Measures from BOT Credit Adjustment o 6-month debt holiday on principal and interest payments for SMEs having credit lines not over Bt100mn (ended in October 2020), 2-month debt holiday for SMEs being hit by COVID-19 For Individuals: First phase is minimum guideline for general public. Measure ended in June 2020 ■ Credit Card and Revolving Loans: • Reduce minimum installment payment to 5% in 2020-21 and 8% in 2022, returning to 10% in 2023; refinancing into long-term loans with lower interest rates ■ Personal Loans with Installment Payments and Auto Title Loans: ⚫ (Banks and SFIs), 3-month grace period on principal and interest payments ⚫ (Other lenders), 3-month grace period on principal and interest payments, or pay up to 70% of installments for 6 months ■ Hire Purchase: • 3-month grace period on principal and interest payments, or 6-month grace period on principal payments for motorcycles (<=Bt35,000), automobiles (<=250,000), and leasing (<=Bt3mn) ■ Housing Loans and Micro and Nano Finance: o 3-month grace period on principal payments and case-by-case interest rate cuts for housing (<=Bt3mn) and micro and nano finance (<=Bt20mn) ■ Ease Commercial Bank Loan Rules for Easier Access ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK Phase 2: For Individuals: Second phase is to ease burdens of people affected; customer can opt-in to alternative measure suited to their debt service ability ■ Reduce the interest rate ceiling for credit cards and personal loans by 2% to 4% p.a., effective from August 1, 2020 onwards. ■ Increase credit limit from 1.5x to 2x of monthly income for good debtors with a monthly income of less than Bt30,000, from August 2020 to December 2021 ■ Provide alternative measures to help debtors hit by COVID-19 who do not become NPLs, such as suspension on principal and/or interest payment, extension of term loan, payment reduction, or postponement of debt repayment ■ Restructure debt: Fls must focus on debtor's debt service ability in order to relieve their burden Debt Consolidation Program for Individuals ■ Consolidate unsecured loans, hire purchase and housing loan from same creditor to utilize the collateral. For the combined unsecured loan, interest rate is capped not higher than the Minimum Retail Rate (MRR), while loan repayment period can be extended according to the debt service ability of debtor "DR BIZ" Project for Businesses who have multiple financial institution creditors with a total loan of Bt50- 500mn ■ Receive relief measures with all financial institutions in an integrated manner ■ Have main creditors to take care debtors and coordinate with other creditors ■ Around 8,400 debtors with a total loan of Bt1.2trn have qualifications to join the project Phase 3: For Individuals: Extend most measures in phase 2, but add options for customers who want to return cars to close loan contract Loan Classification Standstill: For debt holiday, allow to maintain loan stages for SMEs who are in process of debt restructuring until December 31, 2020; and SMEs who cannot forecast their cash flow clearly until December 31, 2021 Non-NPL (Pre-Emptive): 1) Can immediately classify Non-NPL debtors as stage 1 (stage 1 or stage 2 >> stage 1) 2) Not to be deemed as TDR and not to be reported to National Credit Bureau NPL: Classify as stage 1, under a 3 consecutive-month payment period (from the previous 12 months) Additional Working Capital: Can be classified as stage 1, provided that the debtors have sufficient cash flow for repayment Regulation Relaxation No additional provision for unused credit line Easing liquidity-related regulations, including NSFR and LCR Reducing the FIDF fee from 0.46% of deposit base to 0.23% per annum for a period of two years Source: BOT Report to the BOT Financial institutions are required to submit reports to the BOT detailing target loans and outstanding debts of the debtors who are subject to these measures บริการทุกระดับประทับใจ Other measures Relaxing credit line for emergency cases 131 K KASIKORNTHAI 20-Year National Strategy (2017-2036) ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK (As defined in Section 65 of the Constitution of the Kingdom of Thailand and passed by the NLA in June 2017) ■To achieve the vision "Security, Prosperity, Sustainability", to become a high-income country, to improve quality of life, to generate high income, to escape the middle income trap, and to ensure well-being for all Thais "Security" Key Strategies Security "Prosperity" 2 Competitiveness enhancement Development and Empowerment Human Capital 4 Broadening Opportunity and Equality in Society 6 3 5 Reforming Government Administration Environmentally Friendly growth "Sustainability" " The Goals High income country: 15,000 USD per capita by 2036 (2016 income per capita = 5,901 USD) Economic growth around 5% per year (4-5% under 12th NESDB Social and Economic Development Plan and 5% for the next three NESDB 5-Year Plans) People of all ages healthy and with lifelong learning opportunities Target Gini: <= 0.36 (inequality measurement: lower figure indicates better income distribution) Forest area as percentage of total land area more than 40% Fully implement Digital Government Services Enhance Corruption Perceptions Index beyond 50Plus (the lower tier of least corrupt countries) National Strategy Committee: Chairman is the Prime Minister; Secretary is NESDB Secretary-General 34 committee members First 17 committee members are high-ranking state officials and leading industry experts such as the Prime Minister, members of the top brass, National Police Chief, Permanent Secretary for Defense, President of the House of Representatives, Chairman of the Federation of Thai Industries, President of the National Farmers Council, President of the Thai Bankers' Association, Chairman of the Thai Chamber of Commerce, etc. Second 17 Committee members are experts from various fields 2017 I Jun17: NLA passed the law Aug17: Cabinet appointed committees Jun18: Cabinet endorsed the plan Jul18: NLA approved the plan 2022 2027 2032 The National Economic and Social Development Plan (5-year plan) aligned with the 20-year National Strategy The 12th National Economic and Social Development Plan (2017-2021) The 13th National Economic and Social The 14th National Economic and Social Development Plan (2022-2026) I Development Plan (2027-2031) บริการทุกระดับประทับใจ 2036 The 15th National Economic and Social Development Plan (2032-2036) 132

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