Anutin Announces Debt Relief Program with Low-Interest Loans

[webfact]

 

In a recent announcement, Deputy Prime Minister Anutin Charnvirakul revealed that the government is preparing to release non-credit bureau debt relief loans of up to 50,000 baht with a minimal interest rate of 0.75% per month.

 

As of December 18, 2022, there are 99,484 registered debts totaling 5.926 billion baht. Anutin Charnvirakul expressed optimism as the government prepares to offer debt relief through the Bank for Agriculture and Agricultural Cooperatives (BAAC) and Government Savings Bank (GSB). The loans are aimed at those with good credit standing, with a target of assisting 70% of registered individuals, reported Thai Rath.

 

During the press conference, Anutin Charnvirakul highlighted the government's commitment to protecting citizens from harassment or threats, emphasizing that legal actions would be taken against any misconduct.

 

The administration detailed a multifaceted strategy to tackle concerns related to debts not recorded in credit bureaus. This plan places emphasis on restructuring debts, legal measures, and providing monetary support.

 

Subsequently, a committee, spearheaded by the Ministry of Finance, was formed during the gathering to supervise the execution of the debt relief initiative. This committee will keep a close eye on the advancement and efficacy of the three approaches, fostering collaboration between law enforcement entities and financial institutions.

 

The Deputy Spokesperson for the Ministry of Finance, Ms. Traisulee Trisuwan, explained that the meeting approved measures to handle debt issues comprehensively.

 

This includes debt restructuring led by the Department of Local Administration, legal enforcement by the National Police, and financial assistance coordinated by the Ministry of Finance. The latter involves providing low-interest credit through BAAC and GSB, with a goal of supporting 70% of registered individuals.

 

In conclusion, the government aims to address non-credit bureau debt issues by taking a holistic approach, ensuring the protection of citizens and providing financial assistance to those in need. The measures outlined are expected to bring relief to individuals facing financial challenges, promoting economic stability and social well-being.

 

Top picture: Thai Rath

 

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[ezzra]

The only reason those indebted went to a loan sharks is because their banks refused to loan them money being a bad risks,

so now the banks will land billions to same people? and at what interest rates and for how long? that wan't included 

in the article...

[bamnutsak]

So folks will borrow from the government to repay loan sharks.

 

In other news, Thai Loan Sharks expressed support for this "plan".

 

 

[peter zwart]

2 hours ago, webfact said:

a minimal interest rate of 0.75% per month.

still quiet expensive

[Gottfrid]

I know that they fall asleep on the comfy chair in the parliament, but look at the guy to the right. It takes a real man to fall asleep standing.

[Enoon]

4 hours ago, ezzra said:

The only reason those indebted went to a loan sharks is because their banks refused to loan them money being a bad risks,

so now the banks will land billions to same people? and at what interest rates and for how long? that wan't included 

in the article...

 

These loans are for people with "registered debt".........bank debt.

 

It is highly unlikely that they took the loans out with loan sharks.

 

The repayments work out at 9% pa.

 

K-Personal loan from Kasikorn starts at 8.28% pa so the scheme is not such a great deal.

 

This is a scheme to help people who got their loans from banks........people who were, allegedly, "creditworthy":

 

"The loans are aimed at those with good credit standing"

 

......who have already demonstrated that they are a bad credit risk!

 

The banks won't lend them any more but the government will.

 

It does nothing for those who were unable to get a loan from a bank, the poorest people......they are the people being exploited by loan sharks.

 

The government gives not a **** about them.

 

 

[Enoon]

4 hours ago, ezzra said:

The only reason those indebted went to a loan sharks is because their banks refused to loan them money being a bad risks,

so now the banks will land billions to same people? and at what interest rates and for how long? that wan't included 

in the article...

 

PS You might be tempted to conclude that the government, lending to bad credit risks at a higher than market interest rate, is acting like a loan shark.

 

I would not dispute that.

 

 

[khunPer]

10 hours ago, webfact said:

The loans are aimed at those with good credit standing...

Probably not the same people as most of those in need for borrowing money from loan sharks.

 

Interest rate of 0.75% per month equals 9% p.a. More if interest is actually added per month, but that – interest per month or just "0.75 baht" – is normally the way to express interest rate in Thailand; it might however be calculated quarterly of semi-annually.