Methods sought to ease airlines' liquidity crunch

Finance Minister Arkhom Termpittayapaisith has instructed the Fiscal Policy Office and the Bank of Thailand to jointly seek ways to relax some of the criteria for state banks to lend to domestic airlines to improve their liquidity. He said both offices should speed up their decisions to help the airlines improve their liquidity during the prolonged Covid-19 outbreak. Arkhom said some government rules might make it difficult for state banks to provide financial assistance to airlines. For example, if airline operators have already secured loans from commercial banks, then state banks were later to provide loans to the same airlines, the state banks would have to hold talks with the commercial banks regarding the details of how the state banks should proceed, he said. Easing these kinds of rules would make it easier for financial institutions to lend to airlines, said Arkhom. He believes once the country eases lockdown measures, people will travel more, generating revenue for airlines. The minister expects the government to ease lockdown measures in the third and fourth quarters this year to revive economic activities, which will benefit airlines.<br/>