Thai Credit Guarantee Corporation (TCG) reports 2019 performance growth across all dimensions, closing with a guarantee total of 90.628 billion baht. The 2020 plan aims to enhance funding for SMEs, restructure debts, and create financial opportunities, targeting guarantees exceeding 100 billion baht.

 

              TCG summarizes its 2019 performance  showing growth in guarantees, revenue, and profits, reflecting the organization's strong performance and its role as the "state guarantor" driving the economy with a total credit guarantee of 90.628 billion baht, approving 91,489 guarantee letters (LG) and assisting 70,129 new clients. The 2020 plan continues state measures to enhance funding and create financial opportunities, focusing on debt restructuring and extending debt for small SMEs under the concept of "lightweight, unscathed, and with a future," aiming for guarantees of 100.5 billion baht.

             

              Dr. Ruk Wichakphokathorn, Director and General Manager of TCG revealed that TCG's 2019 performance showed growth in all dimensions, including credit guarantees, revenue, and profits, reflecting the internal strength of the organization and proactive efforts to enhance efficiency and effectiveness, helping SMEs access more credit as follows:

  1. Closed credit guarantee total at 90.628 billion baht, a 2% increase compared to 2018's 88.878 billion baht, growing amidst a 2% contraction in SME credit. The 2019 credit guarantees came from approvals through the PGS8 guarantee program totaling 38.01 billion baht, PGS7 totaling 36.681 billion baht, PGS Renew totaling 7.281 billion baht, and Micro3 totaling 5.609 billion baht, among others.

              The significant increase in credit guarantees followed the launch of the PGS8 guarantee program in August 2019, which saw a rise in approval rates. From January to August 2019, the average approval was 5.668 billion baht per month, while from September to December 2019, the average rose to 11.378 billion baht.

  1. Approved guarantee letters (LG) totaled 91,489, a 13.1% increase compared to 2018's 80,917. Additionally, in January 2020, TCG set a new record by issuing 14,465 guarantee letters, the highest since its establishment.
  2. Assisted new clients totaling 70,129, a 27.6% increase from 2018's 54,969.

        In terms of performance, TCG's total revenue for 2019 was 7,793.98 million baht, a 2.23% increase, with a net profit of 754 million baht, up 27% compared to 2018's 595 million baht. The revenue increase stemmed from effective fund management, investment management, and increased revenue from guarantee fees through proactive efforts to help SMEs access credit.

              Highlights of 2019 included the Debt Clinic Fair and TCG's Debt Doctor project, which provided financial knowledge and consulting under the concept of enhancing funds, knowledge, and quality of life. Conducted from September to November 2019, over 4,000 participants attended, with 1,119 receiving consultations through TCG's Debt Clinic, expressing a credit need of over 3 billion baht, and 338 successfully accessing credit totaling 2.131 billion baht. Additionally, 10,477 SMEs sought consultations via Facebook, the website, and Line: @doctor.tcg.

              TCG's notable success in 2019 regarding debt management involved adjusting its debt management strategy to be more lenient, creating incentives to assist debtors facing late payments in restructuring their debts, extending debts, and allowing payment holidays instead of litigation, reducing the initial debt payment from 10% to just 1%, enabling more debtors to seek debt settlement. TCG was able to assist 4,029 SMEs in this category, exceeding the target of 856.

              For the 2020 operational plan and goals, TCG aims to guarantee 100.5 billion baht in loans, approve 112,921 guarantee letters (LG), and assist 83,562 new SMEs through state measures to enhance funding for SMEs, focusing on promoting and supporting businesses in debt restructuring, providing opportunities for struggling SMEs to stand firm through debt extension and payment holidays, creating financial opportunities for small SMEs through the TCG's SME Guarantee Program, with a budget of 60 billion baht, offering free guarantee fees for 2 years and guarantees for up to 10 years. This marks the first time the government policy has provided assistance to debtors with overdue records who are still determined to continue their business.

              Additionally, TCG has extended the loan guarantee period for SMEs in the PGS5-7 programs by another 5 years within a budget of 70 billion baht. Currently, there are 5,014 clients awaiting approval across both projects, totaling 12.539 billion baht. To date, TCG has guaranteed loans totaling over 856.053 billion baht, benefiting 426,198 clients and generating 1,261.094 billion baht in system credit.

              In this year, TCG will continue to drive the organization towards becoming a leading state enterprise under a new platform, fully transforming its role as a cooperative organization that connects funding and business opportunities to enhance the capabilities of SMEs and small entrepreneurs, ensuring access to comprehensive funding sources and knowledge, driving the grassroots economy, developing the organization, and continuously improving credit guarantee products while adhering to good governance, operating transparently and accountably, supporting and creating financial opportunities for SMEs to access credit.