Bangkok: The Cabinet has approved a temporary reduction in FIDF fees for a period of one year to support SMEs in accessing funding. Deputy Prime Minister and Minister of Finance, Ekniti Nitithanprapas, announced the decision, highlighting it as part of the SME Credit Boost project under the Quick Big Win policy.

According to Thai News Agency, the initiative aims to enhance liquidity and improve SMEs' access to funding. Previously, commercial banks were hesitant to lend to SMEs, but this measure seeks to change that by using a portion of the FIDF fund as collateral. This is particularly beneficial for SMEs affected by floods. The initiative is a collaboration between the Bank of Thailand (BOT), the Ministry of Finance, and the Thai Bankers' Association. The authorities believe this move will encourage financial institutions to lend more to SMEs, thus driving their growth.