A soft loan scheme administered by the Government Savings Bank (GSB) has initially attracted demand tallying 70-80 billion baht out of the 100 billion-baht total, according to Finance Minister Pichai Chunhavajira.
Speaking after presiding over and witnessing the signing ceremony of the memorandum of understanding for the GSB Boost Up scheme for commercial banks and specialised financial institutions to support small and medium-sized enterprises (SMEs) yesterday, Mr Pichai said enquiries into the demand at the 16 participating commercial banks revealed much interest in the loans offered by the scheme.
The soft loan project, operated by the GSB, will provide loans to participating commercial banks at an interest rate of 0.01%. These commercial banks are then required to lend to SMEs at an interest rate not exceeding 3.5% for the first two years of the loan, after which the interest rate will be determined by each commercial bank.
Mr Pichai said this project will help to improve the liquidity of SMEs facing liquidity shortages.
Previously, the government implemented schemes to help restructure debts for SMEs that were non-performing loans, and the focus is on increasing liquidity for SMEs.
"SMEs are vital to the national economy, contributing 35% to GDP and accounting for 70% of employment in the system," he said.
Mr Pichai noted that SMEs are crucial in driving the economy, but they currently face various risks, including high business costs and limited liquidity.
GSB president Vitai Ratanakorn said the soft loan project is a multi-purpose loan for SMEs that can be used for investment or to increase business liquidity, except for refinancing.
He said the maximum loan amount per borrower is 40 million baht, with an interest rate of no more than 3.5%, which will help reduce costs for SMEs.
This interest rate, provided to SMEs by commercial banks participating in this project, is the lowest available in the system for SMEs.
Mr Vitai added that the soft loan project, where the GSB lends to commercial banks at an interest rate of 0.01%, does not receive any financial support from the Finance Ministry.
"Nevertheless, the GSB is likely to lose the opportunity to make a profit from this money because if the 100 billion baht were placed in the repurchase market, it would earn an interest of 2.5%," Mr Vitai aded.