SMEs win extension of relief measures
THE Cabinet yesterday approved an extension of relief measures worth Bt16.5 billion for struggling small and medium-sized enterprises (SMEs).
The continuation of the measures, which will be applied though two credit guarantee projects run by the Thai Credit Guarantee Corporation (TCG), were announced at a mobile meeting of the Cabinet in Ubon Ratchathani province.
Nattaporn Jatusripitak, adviser to the Minister of the Prime Minister’s Office, said that TCG has asked the government for no more than Bt16.5 billion in compensation funds for both projects.
Of the two projects, the credit guarantee for micro entrepreneurs - phase 7 of the scheme that was approved by the Cabinet - has a credit guarantee amount of Bt15 billion and the TCG has asked the government for Bt3 billion in compensation for fees and guarantees for this project.
Under this project, the TCG will allocate the amount to participating financial institutions as it deems appropriate. Financial institutions will extend loans to SMEs with no more than a 10-year credit guarantee of a maximum of Bt200,000 per SME. About 150,000 enterprises are expected to gain access to sources of financing with an additional revolving credit of about Bt15 billion in the system.
The other project – known as PGS, phase 7 - has a credit guarantee of Bt150 billion with a cap of Bt40 million for no more than a 10-year credit guarantee for each SME, and the TCG has asked the government for Bt13.5 billion in compensation. Of the total compensation, Bt3.375 billion will be compensated for guarantee fees and a maximum of Bt10.125 billion for guarantees throughout the project period of 10 years.
Under this project, about 43,000 more SMEs will gain credit access with additional revolving credit of no less than Bt240 million, or 1.6 times the amount of the credit guarantee.
The extension of the measures came after the TCG’s Bt13.5 billion credit guarantee for micro entrepreneurs, phase 2 ended on June 30, and TCG’s Bt100 billion portfolio credit scheme (PGS), phase 6 ended at the same time.
At the same Cabinet meeting, the Ministry of Finance reported that the government’s outstanding debt pending for compensation stayed at Bt771.80 billion, or 26.6 per cent of the annual expenditure budget.
After the Cabinet’s approval of these credit guarantee projects for SMEs, the government will have total outstanding debt pending for compensation of Bt788.30 billion, or 27.2 per cent of the annual expenditure budget, below the 30 per cent ceiling.
Also yesterday, Somchart Pongkapanakrai, chairman of the Ubon Ratchathani Chamber of Commerce, said after a meeting on economic and social development for lower Northeastern provinces that several projects have approved. These include the expansion of the international airport building in Ubon Ratchathani.
The lower Northeastern provinces include Ubon Ratchathani, Si Sa Ket, Yasothon and Amnat Charoen.
The meeting was chaired by Prime Minister Prayut Chan-o-cha.
Other urgent projects for Ubon Ratchathani airport worth about Bt500 million - including more aprons and aerobridges - have been agreed by Ministry of Transport. They will be included in the budget in the 2020 fiscal year, instead of in fiscal 2022, as planned earlier.
“The private sector has been trying to propose possible, urgent projects, given the government’s budget limit,” Somchart said.
Vittaya Virarut, chairman of the Si Sa Ket Chamber of Commerce, said that most transport projects in the lower Northeastern Area 2 have been approved and new commercial airport projects in Mukdahan and Yasothon provinces will be studied by Ministry of Transport.
