Government to provide more financial aid to small and medium-sized businesses

Thailand’s Ministry of Finance has been tasked with coming up with plans for additional financial aid to small and medium-sized enterprises affected by the Covid-19 crisis. Government Spokesperson Narumon Pinyosinwat made the announcement yesterday.

“The Ministry of Finance will estimate the budget to be used as well as the loan limit and interest rate, and will present to the Cabinet again in the next meeting.”

A source told Nation Thailand the ministry’s survey revealed that SME operators, who couldn’t get loans at the height of the crisis, were mostly those who had never applied for a loan before and so had no record of their repayment ability. They were refused loans to avoid risk. Furthermore, some SMEs were rejected loans because their status was listed under “non-performing loans,” even though they still have the capacity to continue operating.

The source says the Ministry of Finance has assigned the Office of Small and Medium Enterprises Promotion to come up with measures tailored specifically to help SMEs in the above 2 groups, such as providing loans from the OSMEP’s fund instead of relying on financial institutions. The measures are expected to be ready by the end of July.

SOURCE: Nation Thailand