The Small and Medium Enterprise Development Bank of Thailand (SME D Bank), led by Ms. Narathnaree Ratpat, Managing Director, has joined forces with Asset Management Company (AMC) SAM, represented by Ms. Sirinat Naengonong, Deputy Managing Director, who was assigned by Mr. Tharathorn Techakijkarn, Managing Director, to sign a Memorandum of Understanding (MOU) for business collaboration in a government-to-government (G To G) format. This partnership aims to explore the feasibility of processes to assist and resolve issues for SME operators facing non-performing loans (NPLs), ultimately benefiting the overall economy of the country.

Mr. Kobchai Sangsitthiwat, Permanent Secretary of the Ministry of Industry and Chairman of SME D Bank stated that this collaboration between SME D Bank and SAM represents an integration of cooperation between government agencies aimed at assisting SME operators struggling with debt repayment, which has led to NPLs, allowing them to resume their business operations effectively. SAM's expertise and experience will be utilized to manage NPLs under more flexible conditions and criteria.

Mr. Parinya Patthanaphakdee, Chairman of SAM expressed that SAM, as a state-owned asset management company, is pleased to sign this MOU for business collaboration as part of its efforts to assist and revitalize SME clients of SME D Bank who are facing credit issues, enabling them to recover, survive, grow, and thrive sustainably. He hopes that this collaboration will serve as a model and pilot project for other initiatives aimed at helping clients restructure their debts with both public and private agencies, including various financial institutions in Thailand.

Ms. Narathnaree Ratpat, Managing Director of SME D Bank mentioned that this business collaboration is an exploration of the feasibility of supporting SMEs, marking the first operation between government agencies to integrate assistance for long-term indebted operators, providing them with solutions to continue their business. With SAM's experience and expertise, assistance will be provided to non-performing borrowers more efficiently under relaxed conditions, initially targeting NPLs secured before 2015, with a principal amount of approximately 8 billion baht.

For SMEs that successfully navigate the resolution processes with SAM, SME D Bank is ready to welcome them back to access funding through various loan products. Additionally, SME D Bank is preparing a development program under the “SME D Coach” initiative, offering comprehensive business consulting services to help operators stabilize and sustain their businesses.

“Once these SMEs regain strength, SME D Bank is prepared to support them through financial processes and development initiatives in projects that leave no one behind, such as debt restructuring, reducing repayment amounts to match their repayment capabilities, and providing new capital to enhance liquidity for managing their businesses, purchasing raw materials, increasing production capacity, or establishing standards, etc., so they can either resume their original business or pivot to meet current consumer demands,” Ms. Narathnaree added.

Mr. Tharathorn Techakijkarn, Managing Director of SAM stated that SAM has continuously supported the establishment or coordination of business collaborations in a “G To G” manner with various government agencies through activities or participation in government events to create opportunities and increase channels for meetings and negotiations, assisting and revitalizing clients under the management policy for non-performing assets (NPLs) that focuses on providing clients with opportunities to negotiate debt restructuring.

Considering the clients' repayment capabilities is crucial, and consultations will be provided to reach resolutions under appropriate relaxed guidelines and conditions to assist and alleviate the hardships of clients affected by economic issues and credit problems, enabling them to return to normal life or continue operating their businesses effectively.