One Billion Baht Guarantee for Thai Farmers Bank Loans to Small Businesses.

Byline: Darana Chudasri

Feb. 7--The Small Industry Credit Guarantee Corp yesterday agreed to extend one billion baht in guarantees for loans made by Thai Farmers Bank to small and medium-sized enterprises (SMEs) this year.

The state-owned corporation has guaranteed TFB loans for the past three years. To date, the bank has made loans under the programme of 2.07 billion baht to 798 companies.

David Hendrix, a TFB executive vice-president, said the guarantees would cover loans to customers whose collateral did not cover their credit. The programme would help ensure that firms in need of working capital but lacking collateral could access credit.

Mr Hendrix said TFB this year expected steady growth in its lending to small businesses this year. The bank's loans to firms with annual sales of under 50 million baht total about 152 billion baht.

This year, the bank plans to lend 15.75 billion baht to small businesses, 10 percent more than last year.

To help reach the target, the bank has 75 sales teams, totalling almost 500 people, to service small firms and independent professionals.