In an effort to help struggling small and medium sized enterprises (SMEs) survive the effects of the COVID-19 pandemic, the Federation of Thai Industries (FTI) and the Thai Listed Companies Association (TLCA) plan to propose four debt and health related measures to the Prime Minister, Prayut Chan-o-cha in a meeting for the Economic Situation Administration this week.
Many SMEs across Thailand have indicated experiencing severe difficulties with debt and liquidity problems, as well as a struggle to maintain protection for their workers from virus transmission during the pandemic.
FTI has voiced concerns that many SMEs will go bankrupt without effective measures, as such the FTI has coordinated with the TLCA to create a four-point relief plan to assist SMEs in maintaining their businesses throughout the crisis.
The four proposals due to be suggested at the meeting are:
1. Increase the loan guarantee ratio from 60% to 40%;
2. Do not require businesses that list non-performing loans (NPLs) during the pandemic to record their debt payments with the National Credit Bureau;
3. Relax loan request conditions to enable more SMEs to access loan grants; and
4. Distribute rapid antigen test kits to SMEs to help them screen workers and send those infected with COVID-19 for treatment.
Additionally, under the ‘Faster Payment Scheme’, and in an effort to solve liquidity issues, the TLCA has asked larger companies to quickly repay debts owed to SMEs, so that they are settled within 15 days after the invoice is issued.
