SMEs need relaxed lending criteria from banks

The business sector calls on the government to help cope with the growing financial difficulties of small and medium-sized enterprises (SMEs) ahead of the country’s official reopening by mid-October, as Prime Minister Prayut Chan-o has promised -cha on June 16.

Speaking after a joint meeting between the Federation of Thai Industries (FTI), the Thai Chamber of Commerce (TCC), the Federation of Thai Industries, the Thai Bankers Association and the Federation of Thai SME Associations and the Prime Minister FTI Chairman Supant Mongkolsuthree said SMEs still have many problems, including cash flow, as many cannot get loans from commercial banks.

Due to the strict risk management criteria of commercial banks, many existing SME loans are classified as non-performing loans (NPLs), making them unable to obtain new lines of credit.

“The Bank of Thailand and commercial banks should relax their risk management criteria to allow SMEs that still have problems to borrow so that they can continue to operate,” Supant said.

He said the new loan approval should be based on the ability of SMEs to make a profit, and that banks should consider the qualifications of loan applicants from the collateral they place without checking their credit with the National. Credit Bureau.

Sanan Angubolkul, chairman of TCC, said the government should relax regulations to allow commercial institutions to have their own criteria for offering new lines of credit.

He said the idea of ​​establishing the National Credit Bureau was to put Thailand’s financial system back on its feet after the economic crisis that hit the country in 1997, but right now Thailand’s financial institutions are financially strong.

In the meantime, the Federation of Thai SME Associations has proposed to the government to create a new fund to help SMEs, especially those with NPLs.

The fund will help SMEs plagued by NPLs to have more cash, said Saengchai Teerakulvanich, chairman of the Federation of Thai SME Association.

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