ibank urged to increase lending

BANGKOK, September 5 (TNA) - The Ministry of Finance has urged the Islamic Bank of Thailand (ibank) to increase its lending, as the ASEAN Single Community, scheduled to be established by 2015, will also create a huge market for regional Muslims. Deputy Finance Minister Wirun Techapaiboon suggested in a seminar organized by the ibank in Bangkok on Wednesday that the ibank should expand its lending to reach all groups of clients, pointing out that the ibank has planned to lend 27 billion baht this year, but the bank has actually lent only 12 billion baht so far. Wirun noted that Thailand will join the Single Community of the Association of Southeast Asian Nations (ASEAN) over the next three years, where there will be a total Muslim population of over 250 million, out of the total ASEAN population of 500-600 million, and that more lending by the ibank will support Thai halal food producers to expand into other neighbouring ASEAN markets. Meanwhile, the ibank plans to issue its bonds worth 5 billion baht early next year and more bonds worth the same amount in mid 2013 to expand its lending services, part of which, worth 500 million baht, will be sold to individuals. The move responds to rising capital inflows from the Middle East by 30 per cent annually. (TNA)