Debt moratorium to benefit 7 million farmers and SMEs

[webfact]

 

Deputy Finance Minister Julapun Amornvivat has announced that no more than 7 million farmers and small and medium-sized enterprises (SMEs) will qualify for the initial phase of the debt moratorium.

 

The breakdown of this figure is expected to be around 4 million small-scale farmers and 3 million SMEs. The Deputy Finance Minister has refrained from providing specifics on the scope and limit of the debt suspension, with these details largely determined by the government’s fiscal responsibility in terms of interest payments to state financial institutions.

 

“The debt relief will be offered to small-scale farmers and SMEs without the need to prove any hardship,” revealed Julapun. Further details of the scheme are awaited over the forthcoming fortnight and are set to be submitted to a cabinet meeting at the onset of next month.

 

Post the implementation of the first phase, the government intends to investigate the debt issues of other categories of borrowers, including agricultural cooperatives, teachers, police officers, and informal debt borrowers. The Finance Ministry has been directed by the Prime Minister to hasten the debt suspension for the initial category and alleviate the debt burden of the entire populace.

 

by Alex Morgan

Photo: Somchai Poomlard/Bangkok Post

 

Full story: The Thaiger 2023-09-18

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

Get our Daily Newsletter - Click HERE to subscribe

[edwinchester]

“The debt relief will be offered to small-scale farmers and SMEs without the need to prove any hardship,”

 

Sounds legit. Say your deep in debt without having to prove it and wait for the cash. No scope for corruption at all.

[retarius]

It has corruption written all over it. 

[Purdey]

Why shouldn't they borrow more on the assumption the government will bail them out? 

[hotchilli]

5 hours ago, webfact said:

“The debt relief will be offered to small-scale farmers and SMEs without the need to prove any hardship,”

How can I help you sir?

I'm a poor farmer..

Here you are

[Srikcir]

6 hours ago, webfact said:

“The debt relief will be offered to small-scale farmers and SMEs without the need to prove any hardship,”

What happened to this:

 

"The Bt4 billion in debt of some 28,000 Thai farmers who do not have the means to repay is to be written off, while other debt-relief measures are arranged for some 800,000 other farmers who owe a total of Bt112 billion." April 1, 3015  https://www.nationthailand.com

Or

"The handouts (tens of billions of dollars in subsidies over the past decade) came in place of boosting agricultural research spending, which hammered productivity" Sept. 18, 2023  https://www.reuters.com

 

Debt relief is "low hanging fruit" political theater ultimately as a minor and unsustainable economic solution. It doesn't address world market strategies, climate change and technological innovation.  

[RichardColeman]

6 hours ago, webfact said:

“The debt relief will be offered to small-scale farmers and SMEs without the need to prove any hardship,”

and cue the UK style covid fraud

[Enzian]

The article says the scheme will not lead to moral hazard because along with it will be an incentive program to educate farmers. I presume this is doubletalk. How will such "education" cause farmers to change the culture that led to the unsustainable debt in the first place? Are they going to tighten underwriting guidelines in the future? Maybe, I don't know yet.

Is the program to forgive debt, or like what moratorium usually means, to put a no consequences delay to payments and collections? And if the latter, how will debtors be better positioned when the moratorium ends?

My tgf has a debt to a government bank for money she borrowed and used to buy a parcel of farmland. How does she find out if she qualifies for this program? Thanks for any answers.

[RanongCat]

23 minutes ago, Enzian said:

The article says the scheme will not lead to moral hazard because along with it will be an incentive program to educate farmers. I presume this is doubletalk. How will such "education" cause farmers to change the culture that led to the unsustainable debt in the first place? Are they going to tighten underwriting guidelines in the future? Maybe, I don't know yet.

Is the program to forgive debt, or like what moratorium usually means, to put a no consequences delay to payments and collections? And if the latter, how will debtors be better positioned when the moratorium ends?

My tgf has a debt to a government bank for money she borrowed and used to buy a parcel of farmland. How does she find out if she qualifies for this program? Thanks for any answers.

It is purely MHO those that might qualify are most likely those who have small business or farm debt to Banks and can be identified by linking ID and Bank accounts with negative balance. Electronic monitoring has become increasingly integrated across Thailand. Previous populist schemes have provided data coupled with accelerated use of electronic Banking in volume sufficient to create a workable system for this latest proposal. Despite relatively  low demonstrable income those that subsist without notifiable permanent debt will be denied by virtue of regular account turnover even where that indicates head just above water lives.

Pressure on financial realities will be being exercised by claims on black credit .

Another round of tokenist insistence on minimum deposits for credit purchases will be publicized for a time and then return to continuation of financing schemes to avert " The Black List" .

The exorbitant tax take and profit on car, truck, motorcycle sales needs to maintain shareholder confidence.

THai economy is barely averting major crisis. It is not alone !

Beware wolves in cheap sheep clothing !