SMEs in Nan province yesterday meet with TCG staff to ask about how to get loan guarantees.
SMEs in Nan province yesterday meet with TCG staff to ask about how to get loan guarantees.

TCG expects to back Bt86 bn

Economy May 20, 2017 01:00


4,042 Viewed

THE THAI Credit Guarantee Corporation (TCG) is confident of guaranteeing Bt86 billion worth of loans to small and medium-sized enterprises this year thanks to banks’ reduction of lending rates for SMEs and two government programmes backing Bt35 billion worth of loans to SMEs.

TCG president Nitid Manoonporn was in Nan province yesterday to publicise two loans from the SME Development Bank guaranteed by his corporation. Nan Duo Coffee Limited Partnership got a loan of Bt2 million and Chompu Phuka Co go Bt5 million.

The TCG expects to guarantee loans totalling Bt86 billion this year after guaranteeing Bt18.14 billion worth in the first four months of this year, out of a total of Bt24.48 billion in loans approved by commercial and state-owned banks in the period.

“We believe that we will achieve our loan-guarantee target this year after the government’s launch of the SMEs Transformation Loan programme worth Bt15 billion,” he |said.

The SMEs Transformation Loan programme offers a lending rate of only 3 per cent for the first three years of a loan, and the fourth through seventh years will pay the minimum lending rate. The programme also offers a grace period for the first 12 months.

Meanwhile, commercial banks have been cutting their lending rates for the SMEs so they can compete with big corporates, and this will boost the demand for loan guarantees from the TCG. This is another reason the TCG will be able to achieve its loan-guarantee target, Nitid said.

Since the TCG was established in 1992, it has guaranteed a total of Bt601.2 billion worth of loans, creating an estimated 577,000 new jobs. Around 80 per cent of the lending guaranteed by the TCG has been from commercial banks, and 20 per cent from state-own banks. The TCG aims to boost the proportion from state-owned banks to 30 per cent this year, he said.