The Thai Credit Guarantee Corporation (TCG) has increased its loan guarantee target to 115.6 billion baht for this year, up from 95 billion last year. This includes commercial products worth 75.6 billion baht and government policy-aligned loan guarantees worth 40 billion baht. The corporation aims to reduce non-performing credit guarantees for 12,000 small and medium-sized enterprises (SMEs).
SMEs, especially micro-SMEs (MSMEs), continue to face challenges in accessing capital for growth, with a maximum limit of 200,000 baht per borrower for MSMEs. TCG extended guarantees worth 60-70 billion baht before 2020, which increased to 100 billion post-pandemic due to increased funding needs for SMEs and stricter loan approval processes by financial institutions.
From 2017 to 2023, TCG provided debt restructuring worth 6.94 billion baht to 19,000 SMEs. This year, it aims to provide debt restructuring to 12,000 SMEs. The non-performing credit guarantees (NPGs) account for around 7-8% of the outstanding credit guarantee amount of 700 billion baht, down from 10% during the pandemic.
In 2020, TCG extended loan guarantees worth 114 billion, benefiting around 100,000 SMEs and retaining 855,000 job positions. The corporation’s guarantees generated economic benefits worth 470 billion baht.
TCG is also waiting for regulations from the Finance Ministry to provide loan guarantees to non-banks. These regulations will determine the qualifications of non-banks, including the requirement of a shareholding of not less than 50% by a commercial bank.
READ MORE STORIES: https://bangkokone.news
Check out our new luxury magazine, Thailand One: https://online.flippingbook.com/view/981190657/14-15/
