16-07-2025
B3bn credit guarantees to aid firms hit by trade war
Thai Credit Guarantee Corporation (TCG) has launched a credit guarantee measure worth 3 billion baht to support entrepreneurs affected by the ongoing trade war.
According to TCG president Sittikorn Direksoonthorn, the measure will start in the second half of this year, particularly in the third quarter covering the period July to September, under the project name "SMEs Power Trade & Biz".
The project provides a total guarantee limit of 3 billion baht, offering guarantees ranging from 500,000 to 10 million baht per borrower. It targets groups affected by the trade war, related supply chains, and those impacted by economic conditions.
In addition, in the second half of this year, TCG will also support credit guarantees for small-scale vendors or independent business owners, both online and offline, under the project name "SMEs Micro Biz", with a total fund of 2 billion baht. This group often needs liquidity but lacks sufficient collateral. These vendors are considered to be a vulnerable group suffering from the economic downturn.
For both projects, TCG will waive the guarantee fee for the first three years. After that, a fee of 1.5% of the guaranteed loan amount will be charged, which is lower than the normal rate of 1.75%. The maximum guarantee period is up to seven years.
As for the claim payout rates to participating financial institutions under the two projects, TCG will cover 37% of the guaranteed portfolio under the SMEs Power Trade & Biz project. Under the SMEs Micro Biz project, it will cover 42%.
Moreover, TCG also offers debt restructuring programmes for borrowers under its credit guarantee scheme. From the start of 2022 to June 30, 2025, TCG has already helped to restructure the debts of 20,900 borrowers, covering a total debt of 13.4 billion baht. Measures include extending repayment periods, interest waivers, and principal reductions.
"These restructuring measures help debtors to 'survive and sustain' and make it easier and faster for them to get out of debt. It helps keep businesses alive and gives them the encouragement to become strong again," said Mr Sittikorn.
Regarding performance in the first half of this year, TCG provided a total credit guarantee of 19.4 billion baht, enabling 21,300 SMEs to access credit. For micro-SMEs the average guarantee per borrower was 140,000 baht, while for general SMEs the average was 4.25 million baht.
The top three business sectors with the highest guarantee volume were services, accounting for 31.4%, food and beverage accounting for 10.7%, and agriculture accounting for 8%.
These three sectors combined accounted for 50% of all guarantees, reflecting the key industries driving the national economy in the first six months of the year.
