Bangkok, SME Bank accelerates SME recovery Jan - Jun 67, guarantees 19,000 million baht, receives 45,440 new loans, creates 168,762 jobs, confident that "SME Bank SMEs are sustainable" 50,000 million baht, supports banks to grant loans SME Bank accelerates SME recovery Jan-Jun 67, guarantees 18,946 million baht, promotes second-half plan, continuously accelerates guarantees, confident that "SME Bank SMEs are sustainable" in the second half of the year, helps more than 30,000 SMEs get loans, confident that the government's measure "free fees for the first 2-4 years" will support banks in granting loans Mr. Sittikorn Direksunthon, Director and General Manager of the Small Industry Credit Guarantee Corporation (TCG), revealed that the performance of the TCG in the first half of the year (January - June 2024) was in line with the goals, including loan guarantees, helping SMEs access loans, maintaining employment, including debt restructuring measures, helping debtors solve sustainable debt, and upgrading organ izations to SME Gateways. The loan guarantee from January - June 2024 helped 45,440 SME entrepreneurs access loans, of which 94% were micro-entities, with an average loan guarantee of 80,000 baht per person, while the remaining 6% were SMEs, with an average loan guarantee of 5.31 million baht per person. The approved loan guarantee amount was approximately 18,946 million baht, 168,762 jobs were maintained, 19,610 million baht was created in the system, and 76,771 million baht was created in economic benefits. Through the government loan guarantee project and the loan guarantee project developed by the SME Bank, including: 1. Low-interest loan guarantee project (Emergency Decree on Rehabilitation Loan Phase 2) with a budget of 9,511 million baht, accounting for 50%, helping 1,532 SMEs obtain loans (highest guaranteed amount) 2. Loan guarantee project operated by the SME Bank with a budget of 5,126 million baht, accounting for 27% (including 4 sub-projects: Financial Institutions Phase 7 (BI7) / PGS Renew / Smart Plus and Top up and RBP projects, helping 2,391 SMEs obtain loans 3. Projects under government measures with a budget of 4,309 million baht, accounting for 23%, helping 41,568 SMEs obtain loans (highest number of guarantees) The top 3 types of businesses with the highest guarantees are: 1. Service sector 27.5% 2. Production and other trade 13.5% and 3. Food and beverage 9.6%, all 3 categories account for 51% of the guarantees or approximately 9,600 million baht. While the 4th-6th ranks are consumer goods 9.5%, automotive industry 8.5% and agriculture sector 8.2%, covering all regions of Thailand, accounting for the proportion of loan guarantees in Bangkok and its vicinity 40% and the regions 60%, consisting of the Northeastern region 18%, the Southern region 13%, the Northern region 12%, the Eastern region 9%, the Central region 5% and the Western region 3%. In addition, the SME Bank has also been successful in implementing measures to assist debtors who have been claimed for loan guarantees. With d ebt settlement through debt restructuring measures (TDR), "BIC is ready to help" (4-color measures: purple, yellow, green, and blue), with BIC debtors receiving debt settlement between January and June 2024 as follows: 1. SME debtors who have undergone debt restructuring (TDR) from January to June 2024, totaling 1,792 cases, with a debt value of 1,071 million baht, with 78% of the green group of debtors who still have the potential to repay some of the principal but want interest-free. The cumulative total of SME debtors who participated in the debt restructuring measure and received debt compromise from April 2022 to June 2024 is more than 15,000 cases, with a total debt value of more than 7,000 million baht. 2. SME debtors who participated in the "debt relief" measure (blue color) totaling 100 cases. **Debt relief measures launched in January 2024 are measures to continuously help green debtors who have made 3 consecutive installment payments and want to pay off their debts, with the SME Bank reducing th e principal by 15%.** 'The success of the debt relief measures, the debt restructuring project, comes from the development of a flexible model that supports debt repayment capability at 3 levels (purple, yellow, green), helping debtors to be relieved, reducing financial costs by 'cutting the principal before cutting interest' and '0% interest', with debtors in the group that can still pay but want to be interest-free (green) 78%, debtors in the group that can only pay some (yellow) 14%, and vulnerable debtors (purple) 8%, while debtors who 'repay debt' (blue) have successfully repaid their debts and are continuing their businesses with more than 100 cases and the trend is increasing. The SME Bank aims to help debtors repay more than 100 cases,' said Mr. Sitthikarn. The Bank of Thailand accelerates its proactive expansion in the second half of the year. Mr. Sitthikorn said that the second half of the year, the SME Bank has set 3 goals and is ready to be a mechanism to drive the economy, helping SMEs access loans, including vulnerable groups, environmentally conscious business groups, new startup entrepreneurs, and 8 target industries according to the government's IGNITE Thailand policy. 1. Drive the SME Sustainable Loan Guarantee Project (PGS 11) with a budget of 50 billion baht in collaboration with 18 partner banks. The Ministry of Finance will help reduce the financial cost burden of SMEs by paying the loan guarantee fee on behalf of the entrepreneurs for the first 1-4 years. And especially for entrepreneurs in the SMART GREEN group who operate environmentally friendly ESG businesses and are adjusting their businesses to a low-carbon society, SME will be free of fees for the first 4 years and reduce the guarantee fee by another 0.25% to 1.5% per year. This will be a mechanism to drive and stimulate the economy. The goal for the entire project is to help 77,000 SMEs, create economic value of more than 200 billion baht, generate loans in the financial institution system of more than 60 billion baht, and maint ain employment of 550 billion baht. 'Banks have started sending out loan guarantee applications. It is expected that by the end of 2024, the loan guarantee mechanism from the 'SME Sustainable Bank' project will help stimulate the economy, provide liquidity loans to no less than 46,000 SMEs, and create loans in the financial institution system worth more than 30 billion baht.' 2. Aim to help SME and Micro SME debtors who have been claimed to join the debt restructuring measure, with debt restructuring funds under the 3-color measure totaling 2,500 million baht or approximately 4,000 cases, and support debtors to 'get out of debt' by TCG reducing the principal by 15%. It is expected that there will be more than 200 debtors who will get out of debt in total. 3. Aim to expand the cooperation network with partner agencies and organizations according to the goal of 'TCCG SMEs Gateway' connecting entrepreneurs and networks to support financial knowledge by the SME Financial Advisory Center and accessing partner n etworks via LINE OA: @tcgfirst to prepare entrepreneurs before applying for loans and loan guarantees. In the first 6 months, TCG has expanded its partner network to support SME entrepreneurs by signing cooperation agreements with 9 large organizations, including: 1. Department of Industrial Promotion, 'D-Prompt, Promoting SMEs to Access Capital' project 2. Dhurakij Pundit University, 'DPU Creates Businesses and Professionals' project 3. National Innovation Agency, Promoting Access to Capital for Startup Groups 4. Export-Import Bank of Thailand, in Joint Organizational Development 5. Thailand Post Company Limited, 'Project to Promote Thai SME Entrepreneurs' 6. Keenan Foundation Asia, 'Project to Develop Potential of Elderly, Creating Elderly Entrepreneurs' 7. PTT Energy Public Company Limited, Supporting and Promoting SME Entrepreneurs, Guaranteeing 'Thai Coffee' Franchise Loans 8. Metropolitan Electricity Authority, Jointly Upgrading Businesses by Using Clean Energy and 9. TED Fund . Source: Thai News Age ncy
Bangkok, SME Bank accelerates SME recovery Jan - Jun 67, guarantees 19,000 million baht, receives 45,440 new loans, creates 168,762 jobs, confident that "SME Bank SMEs are sustainable" 50,000 million baht, supports banks to grant loans SME Bank accelerates SME recovery Jan-Jun 67, guarantees 18,946 million baht, promotes second-half plan, continuously accelerates guarantees, confident that "SME Bank SMEs are sustainable" in the second half of the year, helps more than 30,000 SMEs get loans, confident that the government's measure "free fees for the first 2-4 years" will support banks in granting loans Mr. Sittikorn Direksunthon, Director and General Manager of the Small Industry Credit Guarantee Corporation (TCG), revealed that the performance of the TCG in the first half of the year (January - June 2024) was in line with the goals, including loan guarantees, helping SMEs access loans, maintaining employment, including debt restructuring measures, helping debtors solve sustainable debt, and upgrading organ izations to SME Gateways. The loan guarantee from January - June 2024 helped 45,440 SME entrepreneurs access loans, of which 94% were micro-entities, with an average loan guarantee of 80,000 baht per person, while the remaining 6% were SMEs, with an average loan guarantee of 5.31 million baht per person. The approved loan guarantee amount was approximately 18,946 million baht, 168,762 jobs were maintained, 19,610 million baht was created in the system, and 76,771 million baht was created in economic benefits. Through the government loan guarantee project and the loan guarantee project developed by the SME Bank, including: 1. Low-interest loan guarantee project (Emergency Decree on Rehabilitation Loan Phase 2) with a budget of 9,511 million baht, accounting for 50%, helping 1,532 SMEs obtain loans (highest guaranteed amount) 2. Loan guarantee project operated by the SME Bank with a budget of 5,126 million baht, accounting for 27% (including 4 sub-projects: Financial Institutions Phase 7 (BI7) / PGS Renew / Smart Plus and Top up and RBP projects, helping 2,391 SMEs obtain loans 3. Projects under government measures with a budget of 4,309 million baht, accounting for 23%, helping 41,568 SMEs obtain loans (highest number of guarantees) The top 3 types of businesses with the highest guarantees are: 1. Service sector 27.5% 2. Production and other trade 13.5% and 3. Food and beverage 9.6%, all 3 categories account for 51% of the guarantees or approximately 9,600 million baht. While the 4th-6th ranks are consumer goods 9.5%, automotive industry 8.5% and agriculture sector 8.2%, covering all regions of Thailand, accounting for the proportion of loan guarantees in Bangkok and its vicinity 40% and the regions 60%, consisting of the Northeastern region 18%, the Southern region 13%, the Northern region 12%, the Eastern region 9%, the Central region 5% and the Western region 3%. In addition, the SME Bank has also been successful in implementing measures to assist debtors who have been claimed for loan guarantees. With d ebt settlement through debt restructuring measures (TDR), "BIC is ready to help" (4-color measures: purple, yellow, green, and blue), with BIC debtors receiving debt settlement between January and June 2024 as follows: 1. SME debtors who have undergone debt restructuring (TDR) from January to June 2024, totaling 1,792 cases, with a debt value of 1,071 million baht, with 78% of the green group of debtors who still have the potential to repay some of the principal but want interest-free. The cumulative total of SME debtors who participated in the debt restructuring measure and received debt compromise from April 2022 to June 2024 is more than 15,000 cases, with a total debt value of more than 7,000 million baht. 2. SME debtors who participated in the "debt relief" measure (blue color) totaling 100 cases. **Debt relief measures launched in January 2024 are measures to continuously help green debtors who have made 3 consecutive installment payments and want to pay off their debts, with the SME Bank reducing th e principal by 15%.** 'The success of the debt relief measures, the debt restructuring project, comes from the development of a flexible model that supports debt repayment capability at 3 levels (purple, yellow, green), helping debtors to be relieved, reducing financial costs by 'cutting the principal before cutting interest' and '0% interest', with debtors in the group that can still pay but want to be interest-free (green) 78%, debtors in the group that can only pay some (yellow) 14%, and vulnerable debtors (purple) 8%, while debtors who 'repay debt' (blue) have successfully repaid their debts and are continuing their businesses with more than 100 cases and the trend is increasing. The SME Bank aims to help debtors repay more than 100 cases,' said Mr. Sitthikarn. The Bank of Thailand accelerates its proactive expansion in the second half of the year. Mr. Sitthikorn said that the second half of the year, the SME Bank has set 3 goals and is ready to be a mechanism to drive the economy, helping SMEs access loans, including vulnerable groups, environmentally conscious business groups, new startup entrepreneurs, and 8 target industries according to the government's IGNITE Thailand policy. 1. Drive the SME Sustainable Loan Guarantee Project (PGS 11) with a budget of 50 billion baht in collaboration with 18 partner banks. The Ministry of Finance will help reduce the financial cost burden of SMEs by paying the loan guarantee fee on behalf of the entrepreneurs for the first 1-4 years. And especially for entrepreneurs in the SMART GREEN group who operate environmentally friendly ESG businesses and are adjusting their businesses to a low-carbon society, SME will be free of fees for the first 4 years and reduce the guarantee fee by another 0.25% to 1.5% per year. This will be a mechanism to drive and stimulate the economy. The goal for the entire project is to help 77,000 SMEs, create economic value of more than 200 billion baht, generate loans in the financial institution system of more than 60 billion baht, and maint ain employment of 550 billion baht. 'Banks have started sending out loan guarantee applications. It is expected that by the end of 2024, the loan guarantee mechanism from the 'SME Sustainable Bank' project will help stimulate the economy, provide liquidity loans to no less than 46,000 SMEs, and create loans in the financial institution system worth more than 30 billion baht.' 2. Aim to help SME and Micro SME debtors who have been claimed to join the debt restructuring measure, with debt restructuring funds under the 3-color measure totaling 2,500 million baht or approximately 4,000 cases, and support debtors to 'get out of debt' by TCG reducing the principal by 15%. It is expected that there will be more than 200 debtors who will get out of debt in total. 3. Aim to expand the cooperation network with partner agencies and organizations according to the goal of 'TCCG SMEs Gateway' connecting entrepreneurs and networks to support financial knowledge by the SME Financial Advisory Center and accessing partner n etworks via LINE OA: @tcgfirst to prepare entrepreneurs before applying for loans and loan guarantees. In the first 6 months, TCG has expanded its partner network to support SME entrepreneurs by signing cooperation agreements with 9 large organizations, including: 1. Department of Industrial Promotion, 'D-Prompt, Promoting SMEs to Access Capital' project 2. Dhurakij Pundit University, 'DPU Creates Businesses and Professionals' project 3. National Innovation Agency, Promoting Access to Capital for Startup Groups 4. Export-Import Bank of Thailand, in Joint Organizational Development 5. Thailand Post Company Limited, 'Project to Promote Thai SME Entrepreneurs' 6. Keenan Foundation Asia, 'Project to Develop Potential of Elderly, Creating Elderly Entrepreneurs' 7. PTT Energy Public Company Limited, Supporting and Promoting SME Entrepreneurs, Guaranteeing 'Thai Coffee' Franchise Loans 8. Metropolitan Electricity Authority, Jointly Upgrading Businesses by Using Clean Energy and 9. TED Fund . Source: Thai News Age ncy