Foundation urges more funds to aid Thai debtors’ repayments

The Supha Wongsena Foundation For Debtors’ Rights Reform has called on the government to allocate more funds to the Land Bank Administration Institute to assist individuals in repaying their debts.

This appeal was made during a seminar aimed at finding solutions to household debt, organised by the Department of Special Investigation (DSI) at the DSI Academy in Nong Chok district yesterday.

Arjin Joonglook, vice chairperson of the foundation, highlighted their ongoing project designed to help debtors prevent asset seizure. She referenced a specific case in Phatthalung for illustration.

One man in Phatthalung lost his house due to a debt owed to the Government Savings Bank. Seeking assistance from the foundation, he was able to secure a loan from the Land Bank of the Land Bank Administration Institute.

The debtor submitted his mortgage application and, within three to six months, received a loan to repurchase his house. Additionally, the bank provided career training to help him increase his income.

“I want the government to provide the Land Bank with a bigger budget so it can help more debtors clear their financial problems quickly.”

The government’s policy to end people’s hardship, announced by then Prime Minister Srettha Thavisin on May 17 last year, includes plans to address various types of debt, such as household debt, debts owed to farmers, and debts owed to the Student Loan Fund, according to Justice Minister Police Colonel Tawee Sodsong, who attended the seminar.

Pol. Col. Tawee noted that the government has partially achieved this goal, citing the Interior Ministry’s success in clearing informal debts.

However, he pointed out that 90% of all debts are formal ones. He mentioned that 3 million cases related to such debts, worth thousands of millions of baht, have been filed with the Legal Execution Department, with debtors in 700,000 cases having had their assets seized.

The minister stated that the government’s primary objective is to assist citizens in repaying official debts. The House’s subcommittee on land, buildings, and state enterprises recently approved a budget of 470 million baht for the Land Bank Administration Institute during a meeting last Friday. The subcommittee approved the budget without any reductions, reported Bangkok Post.