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INSIDE THAILAND
SMEs to Be Provided with More Financial Assistance

20 August 2020 (Readers 268)


The Cabinet on 18 August 2020 approved an additional fund of 114.1 billion baht to help small and medium-sized enterprises (SMEs), so that they will have greater access to financial sources and increase liquidity for their business operations, affected by COVID-19.

Three groups of business operators to benefit from the financial assistance include (1) general SMEs, (2) SMEs in the tourism business, and (3) micro SMEs and the general public.

The Government Savings Bank (GSB) will provide 20 billion baht to financial institutions, so that they are able to extend soft loans to SMEs. Each SME will be granted a loan of up to 20 million baht, with an annual interest rate of 2 percent for a two-year period. GSB will also extend credit of three billion baht directly to SMEs.

The amount of 57 billion baht, in the Portfolio Guarantee Scheme Phase 8 (PGS 8) soft loan plus, will be extended to the Thai Credit Guarantee Corporation. The amount will be used to guarantee credit for SMEs, with an annual rate of 1.75 percent, and the guarantee period is eight years.

The Thai Credit Guarantee Corporation will also be provided with another 10 billion baht from PGS 8 to guarantee credit by financial institutions for general SMEs. Each SME will be granted not more than 20 million baht, with an annual interest rate of 1.75 percent and a guarantee period of 10 years.

GSB will prepare five billion baht in soft loans to be extended to SMEs in the tourism business and the tourism supply chain. The annual interest rate is 3.99 percent, and the repayment period is five years.

Moreover, the Small and Medium Enterprise Development Bank of Thailand will provide 9.6 billion baht in extra cash credit to be extended to SMEs in the tourism sector and other businesses, with an annual interest rate of 3 percent for the first two years. The repayment period is five years.

As for micro entrepreneurs, GSB will extend 10 billion baht for them. Each will receive not more than 50,000 baht, with an interest rate of 0.35 percent per month. The repayment period is three years.

In addition, the Thai Credit Guarantee Corporation will provide 2.5 billion baht in credit for micro entrepreneurs, under the Micro Entrepreneur Credit Guarantee Program, Phase 3.


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