Cabinet increased credit limits for flood-hit SME operators

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BANGKOK, 8 August 2012 – Thai SME operators, who have been hit hard by the flood crisis in 2011, are in for more financial help from the government. 

Deputy government spokesman Chalitrat Chantharubeksa said on Tuesday that this week’s Cabinet meeting resolved to increase the credit limit for each flood-hit SME borrower, from 10 million baht to 30 million baht.

The state-sponsored financial aid was originally designed with Thai Credit Guarantee Corporation (TCG) as the guarantor and through all members of the Thai Bankers’ Association.

The government has allocated 300 billion baht for the soft loan project, which was intended to be lent out at low interest rate.

Mr. Chalitrat said that the latest Cabinet resolution also asked commercial banks to relax the loan consideration process after their disbursement has been comparatively lower than at state-run banks.

In addition, the Cabinet agreed to extend the loan application period until December 31st, 2013, or until the entire budget has been depleted.