BANGKOK (NNT) – State-owned Thai Credit Guarantee Corporation (TCG) is preparing to launch a 20-billion-baht bad debt guarantee program to assist struggling small and medium-sized enterprises (SMEs) saddled with bad debts.

TCG’s president and chief executive Rak Vorrakitpokatorn said the program will commence in April for SMEs whose loans have turned into special mention loans, defined as loans overdue by no more than 90 days or three months.

He said the program will also cover SME loans that have turned into non-performing loans (NPLs), defined as loans overdue by more than 90 days, although these NPLs must not exceed two years of overdue payment.

TCG will provide a maximum claim of 40% for financial institutions that are creditors of SME loans. Of the 20-billion-baht bad debt guarantee, 10 billion will be allocated for SME loans classified in the special mention loan segment, while another 10 billion will be allotted for SME NPLs.

Information and Source
Reporter : Paphamon Arayasukawat
Rewriter : Paphamon Arayasukawat
National News Bureau & Public Relations :
http://thainews.prd.go.th

Source link

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

APAC region records 119% QoQ growth in M&A deal value in Q2 2022

India, Australia and China were the top three countries when measured in terms of M&A deal value in Q2, with India accounting for half of the top 20 deals. South Korea, Indonesia, Malaysia, and Japan were the next top countries that contributed to a surge in M&A deal value.

How are emerging markets combatting cryptocurrency-related crime?

A record $14bn in digital currencies were transferred to illegal addresses last year, according to blockchain data platform Chainalysis, up 79% on the $7.8bn recorded in 2020.