Krungthai COMPASS revealed the concept of establishing the National Credit Guarantee Agency (NaCGA) as an important initiative to create a credit guarantee mechanism that focuses on managing the risks of individual borrowers, especially vulnerable SMEs who still have problems accessing sources of capital. The main difference from the current credit guarantee mechanism is that borrowers can purchase insurance directly from NaCGA, and NaCGA will issue a guarantee document based on their risk level. The borrowers can then use the document to apply for a loan from a financial institution, allowing borrowers to access financial services more easily and in line with their risk level, while also reducing their reliance on informal loans.
The establishment of NaCGA is expected to increase the volume of credit and financial transactions in the system, expand the base of SME entrepreneurs, and promote employment. In addition, focusing on the risk level of each borrower will help reduce the problem of non-performing l
oans resulting from the lack of information on borrower risk behavior. The government’s proposal to establish the National Credit Guarantee Agency (NaCGA) is an important initiative to create a credit guarantee mechanism that focuses on taking care of the risk of each borrower, especially vulnerable small groups, some of whom still have problems accessing sources of capital.
The credit guarantee agency to be established under the name of the National Credit Guarantee Agency (NaCGA) is a juristic person that is a government agency, but is neither a government agency nor a state enterprise. It is under the supervision of the Ministry of Finance, which will make the guarantee process fast and flexible. It focuses on guaranteeing financial risks for the public and small and medium-sized enterprises (SMEs) to promote access to credit, help financial institutions feel confident in granting credit, and increase opportunities for the public to access sources of funds more easily. The guarantee fee calculation mechan
ism is based on the risk level of the debtor. It is expected to start operations in 2025. NaCGA has the following main goals and missions:
1. Promote access to sources of funds, reduce financial costs, and provide knowledge and financial advice to business operators with insufficient collateral.
2. Be a tool to drive the country’s Strategic Direction in accordance with government policy and support the country’s economic system to enter the new global context.
3. Be a mechanism to maintain economic stability in the event of a crisis and high risks in the financial system.
Source: Thai News Agency