Two programmes to ease credit access
Workers at the Thai Aromatic Coconut Central Market Community Enterprise in Ratchaburi's Damnoen Saduak district trim and prepare aromatic coconuts. The central bank expects its two SME lending schemes to help increase SME lending.
The Bank of Thailand expects its two targeted lending schemes to increase lending to small and medium-sized enterprises (SMEs) by 130 billion baht by the end of next year, as overall bank lending has begun to recover.Speaking at the Northeastern Regional Seminar hosted by the central bank's Northeastern Office on Monday, Bank of Thailand governor Vitai Ratanakorn said total lending by the banking sector has returned to growth, driven by a 4.8% increase in loans to large corporations, while SME lending remains in contraction.
Against this backdrop, the governor expects SME lending to return to positive growth next year, supported in part by the central bank's two lending programmes: SME Credit Boost and SME Secured Plus.
Under the SME Credit Boost programme, designed to help SMEs gain better access to financing through a loan guarantee mechanism, banks have extended around 50 billion baht in loans to SMEs.
