Govt showers more soft loans on shrivelling tourism sector

[webfact]

Govt showers more soft loans on shrivelling tourism sector 

By The Nation

 

PM Prayut Chan-o-cha chairs the Cabinet meeting in the resort city of Phuket on Tuesday.The government will offer more soft loans to support tourism businesses hit by the Covid-19 pandemic, said Finance Minister Arkhom Termpittayapaisith after Tuesday’s Cabinet meeting in Phuket.

 

The Cabinet approved raising the ceiling for government soft loans from Bt20 million to Bt100 million. The Government Savings Bank (GSB) will apply annual interest of 0.01 per cent to banks who offer the loans to tourism businesses. The two-year loans are being offered by commercial banks at annual interest of 2 per cent. 

 

The soft-loan scheme has also been extended to June 30 next year, said Arkhom.

 

The Thai Credit Guarantee Corporation (TCG) will provide loan guarantees worth Bt57 billion, for which small and medium-sized businesses will also be eligible.

 

The TCG will collect a 1.75 per cent annual insurance fee from the third year of borrowers’ eight-year contracts. 

 

The GSB will also extend its Bt5-billion soft-loan scheme for micro businesses engaged in tourism activities and supply chains to June 30 next year. Each can borrow up to Bt500,000 on a five-year term with no repayments in the first year and annual interest of 3.99 per cent.

 

The Small and Medium Enterprise Development Bank of Thailand will extend its Bt10-billion cash loan scheme until June 30 next year. Individuals or SME’s can borrow up to Bt3 million on a five-year term at 3 per cent interest in the first two years.

 

To help airlines to reduce costs, the Cabinet approved cutting tax on jet fuel from Bt4.726 per litre to Bt0.20, effective from November 3 at midnight until April 30 next year. The tax cut will cost Bt700 million, but the government expects it to help boost travel and tourism by keeping prices low. The Transport Ministry will also ask Thai airlines not to raise fares too high, said Arkhom.

 

Airlines have requested soft loans worth Bt24 billion, but the Finance Ministry would look into details before sending requests to Cabinet for approval, he said.

 

The Finance Ministry expects the new financial aid will cover everyone in the tourism industry and ease their burdens during the Covid-19 crisis, he added.

 

Source: https://www.nationthailand.com/business/30397267

 

-- © Copyright The Nation Thailand 2020-11-04

 

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[mtls2005]

Awesome headline.

 

It's dead, move on.

 

Might as well just burn the money, for all the good it will do.

 

Use it for innovation, not rennovation.

 

 

[ChipButty]

everyone in the tourism industry and ease their burdens.

Nice thought, just incase you hadn't noticed there is no tourist it's been wiped out.

No amount of money will fix it until you open up the country and dont make difficult for tourist to get here,

How many members here on TVF would be on the next plane just to get back here? each one of them spends money into the local economy.

I know a few guys who would be here tomorrow

[Rubble]

Nothing original here. Except that it's the new Finance Minister Arkhom offering the "soft" loans instead of ex financial czar Somkid. These loans are intended for tourism businesses that have no tourists. Loan repayments therefore might be a problem. Plus these so called "soft" loans only remain "soft" for a short time after which they become "hard" loans. The debt trap has been set. Then what.....revolving door loans. New "soft" loans to pay off the old "hard" loans? Only a matter of time before the bad domestic debt figures break new records.

[nobodysfriend]

5 hours ago, webfact said:

The government will offer more soft loans to support tourism businesses hit by the Covid-19 pandemic,

 

Nice , but this money will be just burned as long as there are no customers ( tourists ) for the business .

 

Edit : sorry , did not see that some posters said the same already ... that happens when reacting to a topic without reading all the comments first .

[Enzian]

"soft" and "shriveling" in the same headline? I thought porn was just banned.

[hotchilli]

Borrow today... no tourists to next year, no chance to pay back?

Just inviting more debt.

[mtls2005]

1 hour ago, Enzian said:

"soft" and "shriveling" in the same headline? I thought porn was just banned.

 

"Showers" too.

 

 

[sammieuk1]

Who needs tourists just need a printing press ????