Draft of the National Credit Guarantee Institute Act to be submitted to the C...

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"Phao Bhum" opens draft of the National Credit Guarantee Institute Act, 132 sections, to be submitted to the Cabinet in March, overhauling the Thai lending mechanism, pushing SMEs to access loans in the system.
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Mr. Paopum Rojanasakul, Deputy  rcs data philippines Minister of Finance, revealed that the Ministry of Finance and the Bank of Thailand (BOT) have drafted the National Credit Guarantee Agency Act B.E. .... to establish the "National Credit Guarantee Agency or National Credit Guarantee Agency (NaCGA)" consisting of 8 categories and 132 articles to be a mechanism to support access to sources of funds for SMEs, which are the main cogs of the country's economic engine. The bill has passed the public hearing and will be submitted to the Cabinet this March.

NaCGA will be an important mechanism to overhaul Thai lending, increase bargaining power for entrepreneurs, and promote the business sector, especially SMEs, to access sources of funds at financial costs appropriate to individual risks. NaCGA will be a government agency, but not a government department or a state enterprise. It will be merged with the Small Industry Credit Guarantee Corporation (TCG), which will be responsible for assessing risks and guaranteeing credit for borrowers. NaCGA will guarantee non-banks and debentures as well.