Government Savings Bank is moving forward with a soft loan program worth 10 billion baht in collaboration with the Tourism Authority of Thailand (TAT), the Tourism Industry Council, and the Small Industry Credit Guarantee Corporation (SISG). This initiative aims to assist operators affected by the COVID-19 pandemic by providing liquidity support, allowing loans of up to 20 million baht per entity at a fixed interest rate of 2% for two years, with SISG acting as a guarantor for 4,000 applicants totaling 10 billion baht.

Today (March 27, 2020), at the Ministry of Tourism and Sports, a signing ceremony took place for the “Low-Interest Loan Project (Soft Loan)” for tourism businesses impacted by COVID-19. This program is designed to support tourism operators affected by the outbreak of the coronavirus (COVID-19). The Government Savings Bank, along with TAT, the Tourism Industry Council, and SISG, is implementing urgent measures from the government to facilitate access to funding sources for liquidity support, benefiting Thai tourism operators with low-interest loans. The ceremony was presided over by Mr. Phiphat Ratchakitprakarn, Minister of Tourism and Sports.





Mr. Phiphat Ratchakitprakarn stated that the current COVID-19 outbreak has had widespread impacts across many countries, including Thailand, significantly affecting the tourism industry. The government has been closely monitoring the situation and has prioritized measures to support and alleviate the impacts on businesses, particularly in the tourism sector, to ensure they can continue operations and maintain employment for their staff.

Mr. Yuthasak Supasorn, Governor of TAT, mentioned that TAT plays a crucial role in driving and supporting the tourism industry. In response to the current situation, TAT has urgently adjusted its operational policies to assist operators affected by the COVID-19 crisis by collaborating with various financial institutions to help them develop service standards with a “repair and build” approach, preparing for the return of tourists once the global situation normalizes. Additionally, marketing activities will be planned to restore tourists' confidence in Thailand.

On the other hand, Mr. Chai Rat Tri Ratana Jarasorn, President of the Tourism Industry Council of Thailand, stated that the COVID-19 pandemic has significantly impacted the Thai tourism industry. The council, representing operators and professionals in the tourism sector across 13 branches, has received substantial support from the government. This signing marks the beginning of collaboration with the Government Savings Bank and SISG to assist tourism operators in navigating this challenging period.

Dr. Chatchai Payuhanaveechai, Director of the Government Savings Bank, explained that the COVID-19 outbreak has affected the lives of the general public. The government has continuously implemented support measures, including the approval of low-interest loans to assist operators impacted directly and indirectly by the pandemic. The Government Savings Bank is expediting support for a total project budget of 150 billion baht, allowing financial institutions to provide loans to affected operators within a budget of 135 billion baht, while the Government Savings Bank will directly lend an additional 15 billion baht, with applications open until December 30, 2020.

For the Government Savings Bank's loan allocation of 15 billion baht, 10 billion baht has been allocated to the Ministry of Tourism and Sports under the “Low-Interest Loan Project (Soft Loan)” for tourism businesses affected by COVID-19, specifically to provide special assistance to operators in the tourism sector. The maximum loan amount per entity is capped at 20 million baht, with a fixed interest rate of 2% for two years and a maximum loan term of 10 years. Operators can also use SISG to guarantee their loans.
“The Government Savings Bank hopes that this collaboration will help tourism operators continue their business during this challenging time, serving as a force to overcome obstacles and strengthen operators, enabling them to maintain their business potential or recover to normalcy soon, thus contributing to the stable and sustainable economic growth of the country,” Dr. Chatchai stated.

Mr. Vichit Vorakul, Senior Executive Vice President of the Small Industry Credit Guarantee Corporation (SISG), remarked that this is good news for tourism SMEs, as they will have easier access to funding. Various tourism stakeholders have collaborated to drive the Low-Interest Loan Project (Soft Loan) for tourism businesses affected by the COVID-19 pandemic. In this partnership, the Government Savings Bank will provide loans, while SISG will guarantee loans for SMEs lacking collateral, enhancing liquidity and helping businesses survive.

SISG aims to guarantee loans for 4,000 tourism SMEs, with a guarantee amount exceeding 10 billion baht through the PGS (Portfolio Guarantee Scheme) Phase 8, waiving guarantee fees for two years, ending the project on December 30, 2020, or until the budget is exhausted.
Today, the Tourism Industry Council of Thailand has submitted a list of operators wishing to apply for loans to the Government Savings Bank during this signing ceremony.