KBank Subsidiaries and ASEAN Economic Strategy

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 • Bond Markets: BOT will purchase bonds to provide liquidity and lessen volatility in the bond market ■ Corporate Bond Stabilization Fund (BSF): BOT • Bt400bn of bridge financing to high-quality firms with bonds maturing during 2020-2021 at higher-than- market 'penalty' rates. (Issuers must raise the majority of their funding needs 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 1.5 times for interest expenses (Apr-Dec 2020) for SMEs receiving Bt150bn in soft loans • Deduct 3 times for salary costs for SMEs that maintain their employees • Reduce withholding tax for domestic businesses to 1.5% (Apr-Sep 2020) • Speed up VAT refunds to exporters of domestic goods to 15 days (online) or 45 days (filing manually) • Extend corporate income tax filing to Aug 2020 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 o BOT: Bt500bn worth of soft loans for SMEs with credit lines not over Bt500mn, at 2% for 2 years and 6-months interest free* ■ Soft Loans for Entrepreneurs Registered with the Social Security Office: Government • Bt30bn worth of soft loans at 3% for 3 years For Individuals (Bt60bn) ■ Soft Loans for Individuals: Government o Bt40bn worth of soft loans at Bt10,000 per person at 0.1% (no collateral) via GSB & BAAC o Bt20bn worth of soft loans at Bt50,000 per person at 0.35% (with collateral) via BAAC For Individuals ■ Household: Others (Government) • Reduce water and electricity bills and refund meter fees o Extend deadline for personal income tax filing to Aug 2020, and increase health insurance premium deductions ■ Work Force: o 3-month payment of 62% of wages to people under the SSF, if their employer closed their business or if the government ordered business operations suspended o Reduce SSF contribution to 1% o 3-month Bt5,000 monthly payments to workers not covered by the SSF ■ Economy and Health: o Bt45bn for health-related plans • Bt555bn for relief measures, including workforce o Bt400bn for economic recovery plans o Tax exemption on risk payments for medical workers o Bt80-100bn from ministries to use as stimulus funds ■ Support Stock Markets: o Add Bt200,000 of tax-deductible Super Saving Funds bought in Apr-Jun 2020 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 Source: MOF, BOT and KResearch บริการทุกระดับประทับใจ K KASIKORNTHAI Relief Measures for COVID-19 Impacts (Continued) Measures from BOT Credit Adjustment ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK For Businesses ■ Loan Payments for SMEs: • 6-month debt holiday on principal and interest payments for SMEs having credit lines not over Bt100mn For Individuals ■ 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: o (Banks and SFIs), 3-month grace period on principal and interest payments o (Other lenders), 3-month grace period on principal and interest payments, or pay up to 70% of installments for 6 months ■ Hire Purchase: o 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: • 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 Phase 2: For Individuals ■ 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 have NPLs ■ Restructure debt: Fls must focus on debtor's ability to pay debt 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 Loans Classification 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 141 142