State-owned Thai Credit Guarantee Corporation (TCG) has set a loan guarantee target of 120 billion baht for this year, says general manager Sittikorn Direksoonthorn.
He predicted loan guarantees will play a role in supporting the rebound of the tourism sector, as operators are expected to seek credit to resume or develop their businesses.
Mr Sittikorn said while portions of the tourism sector are recovering from the impact of the pandemic, some related businesses such as restaurants are still struggling.
The Fiscal Policy Office expects 27.5 million foreign arrivals in 2023, up from more than 11 million last year. Thailand welcomed 39.8 million tourists in 2019.
Of TCG's total guarantee amount for this year, 70 billion baht is projected for guarantees for financial institutions' loans.
The remainder is for loans granted by banks under the Bank of Thailand's phase 2 project to revive businesses affected by the pandemic.
Last year the agency provided guarantees worth 143 billion baht, letting 82,747 small and medium-sized enterprises access loans worth 157 billion baht and retain more than 1 million jobs.
The guarantees generated economic benefits worth 594 billion baht, according to TCG.
The top sectors it offered guarantees to last year were service, accounting for 27% of its portfolio, followed by farming at 11%, manufacturing and trade 11%, food and beverage 9%, iron, metal and machinery 7%, and consumer products 6%.
The remainder comprised the auto sector at 6%, chemical and pharmaceutical products 5%, petrochemicals and energy 3%, and textiles 2%.
Mr Sittikorn said the agency is also focused on developing loan guarantee products to support businesses in the bio-, circular and green economy.