Commercial banks and large private firms are being urged to join more Pracha Rat public-private collaborative projects to help upgrade Thai small and medium-sized enterprises (SMEs) and community enterprises.
Speaking after a meeting of the Pracha Rat steering committee on SMEs, Deputy Prime Minister Somkid Jatusripitak yesterday called on commercial banks and large private companies to play a more active role in joining the government's ongoing efforts to upgrade SMEs and community-based businesses.
He said government and state banks alone are not sufficient to support SMEs.
Mr Somkid also ordered the next meeting of the Pracha Rat (People's State) steering committee on SMEs to include representatives of 20 large companies, commercial banks and the Bank of Thailand.
The state-owned Government Savings Bank (GSB) and Small and Medium Enterprise Development Bank of Thailand (SME Bank) are the main loan providers to SMEs and community businesses.
"If SMEs and community businesses become more competitive, they can help drive the domestic economy and support more large companies and commercial banks," Mr Somkid said.
He also urged all related agencies to accelerate their campaigns to help provincial SMEs.
Industry Minister Uttama Savanayana said the government has already approved an aggregate 37-billion-baht soft-loan programme to support SMEs.
The loans will be provided under the SME Transformation Loan programme (15 billion baht), the Public-Private Collaborative's SME Development Fund (20 billion baht) and the SME Rehabilitation Fund (2 billion baht).
The SME Transformation Loan programme and Public-Private Collaborative's Development Fund's 35 billion baht will be lent mainly through SME Bank, with the remaining 2 billion under the SME Rehabilitation Fund extended by the Office of SMEs Promotion.
The SME Bank will charge borrowers of the SME Transformation Loans 3% interest for the first three years and 1% interest for seven years with a three-year grace period for the principal through the SME Development Fund.