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Five Thai Banks, State Agency Announces New Guarantee System.
Byline: Darana Chudasri
Oct. 5--The Small Industry Credit Guarantee Corp has announced a new guarantee programme, together with five state banks, based on industrial sectors rather than individual companies.
Chinsuk Viravan, SICGC president, said the agency and participating banks would select which sectors to guarantee and how risks would be shared for loans.
Small-and-medium-sized companies requesting new loans would be pooled together with other companies in the same sector and covered under SICGC guarantees in a single pool.
Companies seeking loans but coming from industrial sectors outside of the programme would still be screened on an individual basis on whether they would receive a loan guarantee or not.
Chavalit Setthamethikul, deputy finance permanent secretary, said 10-15 sectors would be selected in the beginning, chosen from a 64-branch classification system used by the Bank of Thailand.
The focus would initially be on sectors employing the most people.
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