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More than half of SMEs unable to access govt soft loans: FTI

May 20. 2020
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The Federation of Thai Industries (FTI) has revealed that more than 50 per cent of small and medium enterprises (SMEs) are unable to access soft loans provided by the government and financial institutes.

“Of the Bt500 billion loan budget the government has earmarked for SMEs affected by Covid-19, only tens of billions have so far been disbursed,” said FTI president Suphant Mongkolsuthree on Wednesday (May 20).

“Meanwhile, more than half of SMEs who are members of the FTI – about 50,000 to 60,000 businesses – have reported they still have not obtained loans they have applied for.”

“The FTI will appoint a committee to investigate what restrictions are preventing SMEs from getting the loans,” added Suphant.

“Furthermore, we will coordinate with the Thai Credit Guarantee Corporation (TCG) to roll out the ninth batch of loan guarantees under the Participatory Guarantee Systems (PGS), as the current PGS8 project has nearly reached its limit.”

The investigatory committee will be chaired by FTI vice president Pracha Songwattana, who is also a member of the FTI’s Covid-19 Administration Committee.

“During Covid-19 situation many businesses are suffering from lack of liquidity, which could be one reason why they are not approved for loans,” said Suphant.

“The new committee will work closely with businesses in this group to analyse their situation. It will also ask relevant institutes such as the Small and Medium Enterprise Development Bank of Thailand (SME D Bank) to consider providing soft loans to these businesses as special cases.”

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