On August 13, 2024, the Thai Cabinet approved the establishment of the National Credit Guarantee Agency (NaCGA) to facilitate small and medium-sized enterprises (SMEs) in obtaining low-interest loans. The Ministry of Finance and the Bank of Thailand are expected to propose legislation to officially establish the NaCGA, which is anticipated to take approximately six months to finalize.
The NaCGA will operate as a legal entity under government oversight, without being classified as a government institution or state enterprise. Its primary function will be to offer loan guarantees and other financial services to both financial institutions and non-bank financial institutions. The agency will provide guaranteed securities, financial advice to business operators, and develop a credit risk database, thereby enabling businesses to access investment funds more swiftly.
The funding for NaCGA will be sourced from:
1. Government contributions
2. Contributions from lending businesses
3. Other fees and charges
Source : thaigov.go.th