TCG is set to transform into a NaCGA National Credit Guarantee Institution – Forbes Thailand

Mr. Sitthikorn Direksunthorn Director and General Manager Information about the company Small Business Guarantee Credit Corporation (TCG) They revealed that TCG is preparing to transform the organization into a new type of credit guarantee mechanism. Under the policy of the Ministry of Finance With the Deputy Minister of Finance, Mr. Paophum Rojanasakul, he established a “National Credit Guarantee Agency” (NaCGA: National Credit Guarantee Agency) to increase the level of credit guarantees in Thailand. The implementation period is set within 12 months from now.

Recently, I traveled to study a foreign model loan guarantee in the Republic of Korea. To be used in raising the level of credit guarantees in Thailand to NaCGA, together with the signing of a memorandum of understanding (MOU) between TCG and the Korea Credit Guarantee Fund (KODIT) and Korea Technology Finance Corporation (KOTEC), a credit institution loan Republic of Korea trust on 7-8 November 2024 to renew and develop credit guarantees in Thailand. Risk management and accredited credit enhancement model

By expanding the form of loan guarantee From guarantees and payment of applications by each portfolio (Portfolio Guarantee Scheme: PGS) to direct guarantees and payment of applications on a proportional basis (Direct and Personal Guarantee) , with TCG acting as the operator’s credit risk assessor Since information was analyzed Individual risk assessment Calculating guarantee fees according to risk level (Price based on Risk) and using other information of SME entrepreneurs, such as consumption patterns and payment behavior Let’s calculate the credit score for loan guarantees (Other Credit Score Model) to apply the model to the model new business. as well as helping SMEs using technology and innovation or a start-up organisation

Yes

Mr. Sitthikorn said that in the past, TCG has enhanced the organization’s Transforms in various aspects. continuously To increase the capacity to help SMEs in Thailand throughout the 33-year operation, and this time TCG is prepared for an important change. according to government policy to the institution “National Credit Guarantee Agency” (NaCGA: National Credit Guarantee Agency) under its mission in 4 main dimensions as follows:

1. Development of loan guarantee products That respond to the needs of each group of SME entrepreneurs and develop more diverse and efficient service channels, such as the redesign and renovation of regional offices throughout the country (Branch Reform ) to become financial advisory centers for SMEs together with the Digital LINE OA channel: @tcgfirst

2. Development of risk analysis model tools in the form of other data (Other Credit Score Model) to improve credit guarantee results in the form of RBP (Risk Based Pricing), charging fees according to the risk level of SMEs, helping entrepreneurs get The burden of guarantee fees decreases with the level of risk. Using the Credit Score tool to consider loan guarantees.

3. Using Big Data, a 33-year loan guarantee database, to analyze data in different sizes. Develop opportunities to help more SMEs, together with all relevant stakeholder groups.

4. Using Digital Disruption as a driving force for the organization To develop work systems and new financial services on Virtual Banking

“Changes are happening all around. It is a driving force for TCG to continuously change and learn. To be able to be an organization that meets the needs of client organizations According to our mission and to be an SME Gateway that aims to help SME entrepreneurs to access funding sources. and system-wide knowledge,” said Mr. Sittikorn.

Yes

For the 10-month performance of 2024 (January – October), TCG has loan guarantee amounts of 43,228 million baht, helping SME entrepreneurs to obtain additional loans with 76,840, and these are small businesses (Micro SMEs) the proportion as high as 90%, with an average commitment of 90,000 baht per person The remaining 10% are SMEs, with an average commitment of 4.78 million baht per person. We created 46,775 million baht of credit in the financial institution system, sustained 398,998 jobs, and generated more than 177,056 million baht of economic benefits under 3 main projects:

1. Project according to government measures, with a credit limit of 25,057 million baht, accounting for 58% of the guaranteed amount, helping 71,570 SMEs to access loans.

2. Free Interest Loan Guarantee Project (Credit Recovery Order, Phase 2) with a credit limit of 9,893 million baht, accounting for 23% of the guarantee amount, helping 1,543 SMEs to access credit.

3. The loan guarantee project, run by TCG, has a credit limit of 8,278 million baht, accounting for 18% of the guarantee amount, helping 4,481 SMEs to access credit.

As for the top 3 certified business types, they are 1. Service sector 28.8% 2. Product manufacturing and other trade 11.4% and 3. Food and beverage 10%. . of the main industries in the country that have benefited from increased demand for goods and services from economic stimulus measures and the expansion of the tourism sector Especially at the end of the year when various industries Focus on expanding investment to support to the high season. A large amount of money is expected to flow into the economy.

According to the figures of the Ministry of Finance. The Thai economy is expected to expand this year at 2.7%, continuing to 2025, which is expected to accelerate at 3% annually (forecast range of 2.5-3.5%) from positive factors in 4 areas, that is the export consumption of travel goods and investment in both the public and private sectors

Yes

Mr. Sittikorn said that TCG was for the purpose of solving debts The debt restructuring of SMEs through the “TCG Ready to Help” measure or the 3-color measure (purple, yellow, green), which started in April 2022, has was successful in implementing measures to help 16,577 credit guarantor debtors whose claims have already been filed. (In 2024, for 10 months, there were 3,131 cases) representing a total debt of more than 10,636 million baht, the highest record in 33 years since the establishment of TCG. By helping debtors who are in the green group steps to get out of debt. and able to move forward with their business through the “debt relief” step (blue) for 126 cases, with the move that debtors seeking “debt relief” through the step go the size. (measures to relieve debts Initiated in January 2024, it is a measure to help green group debtors who have made good payments in 3 consecutive installments and want to get rid of their debts, where will TCG reduce the principal by 15%).

Yes

With the results of work in promoting knowledge Give advice to SME entrepreneurs through the SME Financial Advisory Center for free! There is no charge. From August 2020 – October 31, 2024, financial knowledge was provided to 22,141 SMEs, divided into 6,793 counseling sessions and 15,348 training sessions, representing a total loan demand of 17,107 million baht, which helps SMEs to access loans in system (success rate). changed so far +18.32% compared to yesterday

TCG has moved forward by upgrading its regional offices across the country (Branch Reform) to “SME Financial Advisory Centres” to provide advice on accessing funding sources. debt problem solving and financial knowledge In conjunction with providing services through LINE OA: @tcgfirst, ready to make an appointment to request a consultation. And register to participate in various TCG events for free! There is no charge.

Other interesting stories: Thai household debt is up 91.4% to GDP.

Don’t miss out on other interesting articles and stories. Follow us on Facebook at Forbes Magazine Thailand.