Govt stresses commitment to ending informal loans

[rooster59]

Govt stresses commitment to ending informal loans

Thammarat Thadaphrom

 

 

The Thai government has reiterated its commitment to putting an end to the issue of informal loans or non-conventional debt, which it sees as an adversity faced by the poor and many agriculturists. 

 

Because of difficulties finding adequate access to credit, numerous people have come to depend on "non-conventional” financial sources. Non-conventional loans with high interest rates have crated a major debt load for these people and has led to many problems, such as crime and family conflict.

 

The government has been mobilizing efforts to ease people’s suffering stemming from their level of debt from non-conventional loans. It has come up with five measures to tackle the issue in an integrated manner and on a sustainable basis.

 

In the first instance, firm action will be taken against informal and unregistered creditors over their illegal acts, such as the charging of excessive interest rates. The second measure seeks to provide debtors trapped in this system, as well as the general public, with greater access to conventional financial sources.

 

The third measure involves a compromise with creditors in order to reduce the burden of debtors. The fourth measure seeks to increase the employment potential of debtors with non-conventional loans, so that they can earn more money for debt repayments.

 

In the fifth move, relevant agencies will be provided with support to enable them to effectively ease the problem of non-conventional loans. Community financial networks will be created and encouraged to help tackle this problem and provide their people with better financial knowledge and functional skills.

 

 

-- nnt 2019-01-06

 

[seajae]

werent these loan sharks outlawed by the govt previously, seems they keep repeating what they are going to do without doing it, all loan sharks should be arrested and have all their illegal gains seized and returned to the rightful owners as long as they have repaid the principle of the loan less the outrageous interest rates 

[Enoon]

53 minutes ago, seajae said:

werent these loan sharks outlawed by the govt previously, seems they keep repeating what they are going to do without doing it, all loan sharks should be arrested and have all their illegal gains seized and returned to the rightful owners as long as they have repaid the principle of the loan less the outrageous interest rates 

 

The road to hell is paved with good intentions - Wikipedia

"Another meaning of the phrase is that individuals may have the intention to undertake good actions but nevertheless fail to take action. This inaction may be due to procrastination, laziness or other subversive vice. As such, the saying is an admonishment that a good intention is meaningless unless followed through."

 

The "Good People" are full of very well publicised "good intentions".

 

 

[exparte]

The Government makes it sound so easy for these people seeking loans. Having Family who has tried to get these Gov't Loan, they have experienced many problems with their loan programs. They must put up collateral; and the Lenders charge high fees just to assess the value of the collateral which is in most cases undervalued. The Lender charge a service fee as much as 10,000 baht to send someone out to look at the Collateral and asses it value which must me paid first before they even start the processing the loan. Most of the Debtors do not have a regular income as they are Farmers, Food Vendors, etc. and cannot prove a recurring income. Most people are seeking these loans due to some tragedy: Someone dies and money is needed for Funeral costs; or a Family Member has health problems; or a family member has legal problems. 

 

A Much better program is the one Thaksin implemented where he provided Money out to each Village for Loan. If the Debtos paid the money back on time year. They where able to borrow more the next year.

[Srikcir]

4 hours ago, rooster59 said:

The Thai government has reiterated its commitment to putting an end to the issue of informal loans or non-conventional debt

Prayut just needs another four years as PM to meet these commitments.

[cornishcarlos]

14 minutes ago, Srikcir said:

Prayut just needs another four years as PM to meet these commitments.

 

That's a very optimistic time frame !!