GSB plans debt moratorium for 630,000 debtors amid Covid-19 pandemic

[snoop1130]

 

The Government Savings Bank (GSB) is setting up a plan to provide a debt moratorium for 630,000 debtors, totalling 6.3 billion baht. This plan is in response to the economic hardship experienced by individuals and businesses due to the Covid-19 pandemic, according to an anonymous source.

 

During the pandemic, between 2020 and 2021, GSB, a state-owned entity, issued loans totalling 20 billion baht to low-income borrowers as part of the government’s effort to alleviate public debt. This was a major milestone in the government’s debt relief initiatives, as it offered customers the opportunity to borrow up to 10,000 baht with a monthly interest rate of 0.35%, along with a six-month grace period for principal and interest payments.

 

On December 19, last year, the Cabinet approved GSB’s proposal to aid debtors affected by Covid if a debtor is in ongoing financial hardship, GSB has the authority to utilise a government-allocated budget to compensate for non-performing loans (NPLs). This action allows these NPLs to be eradicated, and the debtors to be removed from the National Credit Bureau’s bad debtor list, from January 6 to 31.

 

The source mentioned that this measure, which will only be offered once to maintain financial discipline, is predicted to assist about 630,000 debtors. This figure is significant given that, out of the 22.6 million households in Thailand, nearly 80% or 17.8 million are low-income earners, and 51% or 9 million are in debt, according to GSB data.

 

Full story: The Thaiger 2024-01-08

 

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[connda]

This doesn't provide anymore relief than throwing a 20kg weight on the end of a rope will help a person who is drowning.

[CRUNCHER]

Why a picture of the Bank of England? What has that got to do with GSB?

[hotchilli]

11 hours ago, snoop1130 said:

This plan is in response to the economic hardship experienced by individuals and businesses due to the Covid-19 pandemic, according to an anonymous source.

Well the government did bankrupt thousands of businesses and ruined so many lives when they decided to lock down the country and prevent them from earning a living.

Of course civil servants got to stay home and keep the monthly salary coming in.

[Bobthegimp]

Obviously the result of a Cheech n Chong smoke in at a parliamentary bud lounge. Envision a group of bureaucrats passing a refer around when a particularly smart one says " we can issue loans....to alleviate debt!" 

 

One man's debt is another man's asset.  

[Thingamabob]

The GSB regularly provides a moratorium for debtors. It then provides more loans for the same stratum of the population who then go into debt all over again. It'a never-endjng cycle to keep the masses under control.