The Thai Credit Guarantee Corporation (TCG) board has sacked Nitid Manoonporn from the post of president after he failed to pass a performance appraisal for the third time.
Nitid: Failed to pass performance check
Niparat Pisitpitayasaree, TCG's senior executive vice-president, has been appointed as acting president, effective from March 26, to ensure a smooth operation, chairman Surachai Danaitangtrakul said in a statement released yesterday.
Mrs Niparat has been fully authorised by the board to take over Mr Nitid's jobs, particularly concerning the portfolio guarantee scheme 6 (PGS6), of which credit guarantee amounts worth tens of billions of baht are still available, Mr Surachai said.
The board has reported the dismissal to the Finance Ministry to ask for an approval to search for a new president as soon as possible, he said.
A source at the TCG said Mr Nitid failed to pass the semi-annual performance appraisals three times because of personal issues.
Mr Nitid took the helm at state-owned TCG on Jan 1, 2016.
With PGS6 guarantees gaining popularity slowly after being initiated in late 2016, the government raised the cap for non-performing loan coverage to 30% from 23.8% to attract small and medium-sized enterprise (SME) borrowers to use the credit guarantee service, a tool to help them more easily secure bank loans.
The government and banks jointly subsidise an annual fee of 1.75% of the loan amount for four years.
Under the higher NPL coverage scheme, TCG has taken full responsibility for up to 30% of soured SME loans under its credit guarantee portfolio, while lenders must shoulder the remaining NPLs.
The maximum guarantee amount under the revised PGS6 was capped at 40 million baht.
