Government to allow the use of trees as collateral for loans

[rooster59]

Government to allow the use of trees as collateral for loans

By THE NATION

 

Government Spokesperson Narumon Pinyosinwat

 

Owners of 58 economically valuable trees will be able to use them as collateral when applying for loans at financial institutions under a new policy, Government Spokesperson Narumon Pinyosinwat said yesterday (July 17) on her Facebook page.

 

 

“This policy was proposed by the Ministry of Commerce as a measure to help people gain access to financial aid and promote the growing of economically valuable trees in communities,” she said.

 

“The ministry therefore issued a regulation regarding other types of valid collateral that can be used under the Business Collateral Act BE 2558, while the types of economically valuable trees will be according to the Forest Plantation Act BE 2535.”

 

The spokesperson also posted pictures and a list of 58 economically valuable trees, along with the common name in Thai and their scientific names in English. Among these are: teak, mango tree, durian tree, tamarind tree and all types of bamboo.

 

 

Source: https://www.nationthailand.com/news/30391518

 

-- © Copyright The Nation Thailand 2020-07-18

 

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[Paiman]

Getting 3 Bonsai trees from the market and Monday my missus is going to the Bank.

[ThailandRyan]

Maybe they can use the trees that people cut down and lay behind there broken down cars on the roadways.  Collateral for a loan to repair the vehicle I guess.

[Paiman]

What would it look like if the person can not repay the bank afterwards?

[Dap]

Sounds like a new scam for cutting down more forests.

[ignis]

I have 12 Mulberry Trees in my garden, planted them 16 years ago, + Lemon Tree wonder how much the Bank will give me  ??  

[PETERTHEEATER]

Son of a beech. I wooden bet on this happening in practice. It's plane to see she's barking up the wrong tree.....

[ThailandRyan]

2 hours ago, Paiman said:

What would it look like if the person can not repay the bank afterwards?

well then there would be plenty of charcoal being made from them thar tree's and the land be for planting more fruit

[Misterwhisper]

Until recently I had 2 large mango trees in my garden. Unfortunately they became afflicted by some disease and had to be cut down.

 

In the context of this latest government announcement, I guess you could say I suffered heavy collateral damage.

[hotchilli]

1 hour ago, ignis said:

I have 12 Mulberry Trees in my garden, planted them 16 years ago, + Lemon Tree wonder how much the Bank will give me  ??  

5 minutes... possibly!

[Cake Monster]

I just wonder how much of this collateral will be come Diseased and die before the Loans are  payed off.

Are my Tomatoes classed as a Tree ?

[86Tiger]

Bamboo???

 

I am rich!

[Redline]

Next it will be dirt.  Why not, thais are only in debt 80 percent~shoot for 100!

[Justgrazing]

Woody .. it's time to get your pecker out .. 

[scorecard]

5 hours ago, Paiman said:

What would it look like if the person can not repay the bank afterwards?

Bank uproots the trees to repossess them and all put in the bank car park, cars banned. 

[DrTuner]

Bamboo? Better not tell MIL, she has a few rai that's not suitable for farming but is overgrown with bamboo. She'd probably borrow every satang she could get to buy even more land.

[hotchilli]

12 hours ago, Cake Monster said:

I just wonder how much of this collateral will be come Diseased and die before the Loans are  payed off.

Are my Tomatoes classed as a Tree ?

They are fruit.. give it a try !

[Sydebolle]

Interesting development for a developing country with all-shallow beaches having three submarines on order. Also interesting is the possible diversification of banking business going into collateral auctions of trees anytime soon. 

Is there anybody in this set of rulers having a whiff of common sense? Not my circus, not my monkeys but the bizarre news you get on a daily basis proves either very imaginary press or some serious clowns at the helm of a ship completely lost for directions ........... 

[overherebc]

Could be soon a lot of dogs with nowhere to go.

[canopy]

Sounds positive. I can see people leaving a few trees behind rather than cutting them all down as they do now or even planting a few new ones to get free money. Would be good to know how much money are they loaning for each type. And is size and age considered in the valuation? I imagine so otherwise there would be no incentive not to just cut them down right after getting the loan. If the valuation goes up with size they would have incentives to leave the trees grow in order to get bigger loans.

 

[Burma Bill]

On 7/18/2020 at 12:02 PM, Paiman said:

What would it look like if the person can not repay the bank afterwards?

Te banks would be "barking" mad!!