Cabinet Approves Temporary Reduction of Financial Institution Development Fund Contributions to Support SME Lending

Ekanit Nititunprasert, Deputy Prime Minister and Minister of Finance, disclosed after the Cabinet meeting that the government approved a temporary one-year reduction of contributions to the Financial Institution Development Fund (FIDF Fee). The measure is part of the 'Quick Big Win' package aimed at supporting SME entrepreneurs, especially small businesses facing liquidity challenges and struggling to access financial institution funding due to cautious bank lending practices. The FIDF funds will be used to support credit initiatives like the SME Credit Boost project, which aims to guarantee risks and improve financial system liquidity, while also mitigating flood impact effects. This is a collaborative effort between the Ministry of Finance, Bank of Thailand, and Thai Bankers Association. Ekanit emphasized that the measure plays a crucial role in encouraging financial institutions to be more confident in lending to SMEs, ultimately providing entrepreneurs with increased access to capital and supporting continuous growth of the Thai economy.