Thailand: Industry Ministry to suspend small firms’ debts

• The Industry Ministry plans to roll out rescue measures by suspending debt payments for 6-12 months for small community enterprises for several industries. The measure covers businesses in food, drinks, herbs, jewellery, souvenirs and clothing. Local producers can apply for debt suspension in Apr 20.
• The Industrial Promotion Department under the Industry Ministry has extended loans to 2,500 small and medium-sized enterprises (SMEs) and community enterprises through a revolving fund for household industries and handicrafts. The fund covers 77 provinces with a total credit limit of THB370mn and a THB200,000 limit per person.
• Some 771 businesses are eligible for the debt suspension, including 557 already making normal payments that can suspend the debt for 12 months valued at THB134mn.
• A debtor who has been late on payment for three months can suspend the debt for six months. About 94 businesses, with a total of THB43.9bn in debt, are eligible.
• Nattapol Rangsitpol, director-general of the Industrial Promotion Department, said SMEs and community enterprises are the backbone of the economy and account for 80% of the country’s GDP, boosting employment and income distribution in local economies.
• Since 2017, the government has provided THB20bn in soft loans under the Pracha Rat fund, aimed at helping SMEs.
• Earlier in 2020, the Industry Ministry expected to spend THB800mn to develop and support SMEs and community enterprises in Thailand in 2020.
• The Industrial Promotion Department is primarily focused on local farms that the government wants to transform from traditional agriculture to modern methods through tech and innovation under Thailand 4.0.

External Link : https://www.bangkokpost.com/business/1889050/industry-ministry-to-suspend-small-firms-debts