TCG Accelerates Loan Guarantee Measures as SME Credit Remains Negative for 5 Consecutive Years

Sittikorn Direksoontorn, Managing Director of the Credit Guarantee Corporation for Small and Medium Enterprises (TCG), revealed that the Thai financial system's credit situation continues to contract, with SME credit being the most severely impacted. According to Kasikorn Research Center, SME credit is expected to remain negative for the fifth consecutive year, which is the longest continuous negative period since the Tom Yum Kung crisis. As a result, TCG has launched an urgent targeted measure called "TCG Quick Big Win" to stimulate lending. As of February 2nd, the loan guarantee approvals have reached 10,000 million baht, with January 2024 seeing loan guarantees of 7,125 million baht - a 217% growth compared to the same period last year. The measure has helped support 13,126 SMEs, with nearly 50% being micro-enterprises. It has also preserved 82,500 jobs and generated over 41,300 million baht in economic benefits. The initiative aims to enhance credit potential and increase loan approval rates, especially for small businesses lacking traditional collateral.