Thai government proposes 15 billion baht plan for informal debtors relief

Photo courtesy of KhaoSod

The Ministry of Finance proposed a plan to the Cabinet to assist informal debtors, allocating a budget of 15 billion baht through the Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC).

This initiative will also aid debtors affected by the Covid-19 situation who have lost their credit bureau records.

At the Government House at 10am today, December 12, Finance Minister Krisada Chinavicharana, stated before a Cabinet meeting that the meeting would address the issue of out-of-system debt relief. He had held discussions with the GSB and the Ministry of Finance on how to resolve this debt issue. The process is currently in the registration stage.

A countermeasure being considered is for the GSB to issue loans that the government will cover to refinance out-of-system debts. This is a new project, and farmers will also be assisted with their out-of-system debts through the BAAC. The total budget that these two banks will utilise amounts to 15,000 million baht, reported KhaoSod.

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Krisada added that another measure is to use funds that were previously approved but not yet utilised. These funds will be given to the GSB to assist debtors who have been impacted by the Covid situation and have been dropped from the credit bureau’s records.

In related news, a businesswoman, burdened with an overwhelming debt, registered for an out-of-system debt relief scheme. She owes money to 14 lenders and faces the daily challenge of finding more than 7,000 baht for interest payments at a rate of 20%. This move comes after the government, under Prime Minister Srettha Thavisin, has been focusing on resolving out-of-system debt issues for citizens nationwide. Read more about this story HERE.

In other news, over 2,500 debtors in Nakhon Ratchasima have registered for assistance in resolving their informal debts, amassing a total debt of 195 million baht. The highest number of registrations came from the Mueang district. Read more about this story HERE.

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Nattapong Westwood

Nattapong Westwood is a Bangkok-born writer who is half Thai and half Aussie. He studied in an international school in Bangkok and then pursued journalism studies in Melbourne. Nattapong began his career as a freelance writer before joining Thaiger. His passion for news writing fuels his dedication to the craft, as he consistently strives to deliver engaging content to his audience.

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