The state-owned Thai Credit Guarantee Corporation (TCG) is urging banks to be bold in extending more loans to small and medium-sized enterprises (SMEs) in risky business areas or with troubled credit records.
‘Our non-performing guarantee rate would not be this low if banks were more confident in extending credit to SMEs,’ says Mr Vallobh. TCG has proposed widening its risk-sharing ratio to 48%from 37.5% currently for startups to encourage lenders, but related agencies remain reluctant. PORNPROM SATTRABHAYA
Acting president Vallobh Tejapaibul said financial institutions are too conservative and should provide loans to SMEs with poor credit history but which still have the ability to service debt.
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