Thailand to spend over 220 million USD to help SMEs get loans

The Thai Cabinet has approved a scheme to spend 8.28 billion THB (223 million USD) on interest and loan guarantees to help small- and medium-sized enterprises (SMEs) access capital more easily.

The maximum loan per borrower is 10 million THB, with a loan term of up to 10 years.

Speaking to reporters after the weekly Cabinet meeting on June 11, Thai Prime Minister Srettha Thavisin said the Government will spend 1.15 billion THB on the first measure, which will help SMEs in three target groups get soft loans from the Government Savings Bank (GSB).

He said the Cabinet has also earmarked 7.13 billion THB for the Thai Credit Guarantee Corporation to spend on guaranteeing loans for SMEs under the 11th phase of the Portfolio Guarantee Scheme (PGS11).

Meanwhile, Thai Government spokesman Chai Wacharonke said that under the first measure, which is called the “Ignite Thailand” soft loan project, the GSB will provide 5 billion THB worth of soft loans for SMEs in the industries of tourism, wellness and medical, and agriculture and food.

He explained that the government will spend 1.15 billion THB on covering the interest cost for GSB, adding that each SME will be eligible for a soft loan of no more than 10 million THB for 10 years.

These loans will be granted at an interest rate of 2.5% per annum for the first two years with a six-month grace period. The interest will then be reduced to 0.75% per annum for the following two years before it rises to 1.75% per annum from the fifth year.

Chai said that under the second measure, the Thai Credit Guarantee Corporation will guarantee loans worth 50 billion THB for SMEs.

This will allow SMEs to be exempted from loan guarantee fees for the first two years, after which they will be charged 0.75% as a fee in the third and fourth years, he added.

Thai Deputy Finance Minister Paophum Rojanasakul said these two projects will give SMEs access to funds that will help them expand their business and subsequently the Thai economy grow./.

VNA