A Million Seek Govt Help With Loan Shark Debts

[webfact]

A million seek govt help with loanshark debts

By The Nation

Published on January 19, 2010

Close to a million people owing just under Bt105 billion in total to local loansharks had registered for the government debt-relief scheme last month, a source at the Interior Ministry reported yesterday.

Bangkok had the most people registered with 67,362 debtors and Bt6.25 billion in total debt.

This was followed by Surin, which had 60,719 debtors who owed a total of Bt6.30 billion; followed by 47,923 debtors who owed some Bt5.35 billion in Nakhon Ratchasima; 36,607 debtors owing Bt3.84 billion in Si Sa Ket and 32,910 debtors owing Bt3.41 billion in Ubon Ratchathani.

Samut Songkram had the least with just 1,611 people owing Bt170.6 million in debt, followed by Ranong's 1,777 debtors owing Bt178.7 million, Trat's 1,822 debtors owing some Bt202.4 million, 2,545 people in Mae Hong Son who owed Bt273.8 million in debt, plus 2,557 people in Sing Buri who owe some Bt270.9 million.

Interior Ministry officials will contract provinces and districts from February 1-15 for details and set dates for debtor-creditor talks after receiving information on the debtors on February 1 from the Finance Ministry.

Negotiations were expected to complete buy-ups of these debts at a rate of about 25 per cent per month from February 16 to June 16.

-- The Nation 2010-01-19

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[moetownblues]

Time for another crackdown

[NADTATIDA1]

105 billion baht to purchase 1 million votes!

good logic or not?

Edited January 19, 2010 by NADTATIDA1

[tig28]

105 billion baht to purchase 1 million votes!

good logic or not?

Now now ... The Democrats don't buy votes ---- they are far above that!! Popularist vote buying was perpetrated by "the great satan" only.

To me it seems a perfect plan --- votes bought with the taxpayers money!!

[Bagwan]

Have I got this right?

The governing classes have decided to pay themselves back the money they loaned to the peasants who cannot meet the interest charges even, from public funds? No conflict of interest there then.

[slapout]

Since the loan shark loans are now documented to authorities, why not incarcerate the the lenders for usury where applicable and ensure the illegal debt is written off. This may mean the extended family moving in with the authorities but Thailand is all about family anyway.

[NADTATIDA1]

Since the loan shark loans are now documented to authorities, why not incarcerate the the lenders for usury where applicable and ensure the illegal debt is written off. This may mean the extended family moving in with the authorities but Thailand is all about family anyway.

It saves the "farang" having to bail the debt,so i am all for it!

I see it as a positive step by the government to aid the ailing tourist industry

[geriatrickid]

Now that the loansharks have been identified, time to go after them for non payment of taxes. These loans are very profitable. The parasites must share the proceeds with the taxman.

[Old Man River]

Debt levels with loan sharks will be skyrocketing in a few months (world cup).

[jonclark]

If the government bails you out, can you, once the original debt is cleared, go and get another loan, and then another bail out. I assume that once bailed out you payback the bank / government. What is the interest rate on the bail out, anyone know?

I wholeheartedly applaud the government for this and i'm sure that anyone who has been in debt will agree, worrying about how you are going to make that next payment is never pleasent. I would be nice if the debtors where also given free advice on how to manage their finances more carefully so that they can avoid falling foul of loan sharks in the future.

At the end of the day raising the incomes of some of the poorest is the best way to prevent this.

[salty]

If they go after the loan sharks they will be only be a few left to collect tea money.

[MAJIC]

Once new a Thai woman who made no secret of the fact that she lent money out at 10% per month.Im sorry for those who have to borrow at this rate, wonder what the real sharks charge?

[animatic]

Now that the loansharks have been identified, time to go after them for non payment of taxes. These loans are very profitable. The parasites must share the proceeds with the taxman.

Well we can agree on this.

If in addition this buy up saves some land for the poor from the sharks,

and lowers their onerous, userous interest debt it's good.

[Dustybin]

Oh abisits minister with portfolio for " creaming scams off" will be involved, in a manner of speaking.

[Tigs]

Thai culture runs on the cottage industry of loans. It is accepted that 20% per month is a going rate. It sounds a lot but the average loan in our area is 2000 Baht. People dont seem to mind paying 400 baht for the privilege. The real loan sharks are the criminal gangs who charge 60% per month minimum. There were two guys nabbed by the police recently charging 20% per day!!

[monkfish]

I have a relative he earns 6000-8000 BhT per month working 16 hours per day on a large golf course near to Rayong. He also has a wife and two children but the good news, at least they get free accommodation i.e. a room in a tin shed, you may have seen these around in Thailand. Anyways 4 years ago he and his wife tried to start a small sawing business for which they borrowed 20,000TBHt from one of these loan sharks to buy second hand equipment and rent a small shop. With only 20,000BHT the business didn't last long but they still have the debt which since the last 4 years costs them 2000 BHT per month so go work that one out. With two kids they just cannot get the 20000 in cash to pay back the loan shark and they don't accept part payment. So he did apply for the above scheme but was rejected by the government on grounds that he does not have a work contract and therefore cannot guarantee the monthly payments. So I really just wonder what the real situation is in Thailand and think these figures must be way way off!! seems like a scheme for the middle class and not the real poor Thais to me.

[Heng]

I would be nice if the debtors where also given free advice on how to manage their finances more carefully so that they can avoid falling foul of loan sharks in the future.

I give out this advice, (which I learned while doing my second MBA at Wharton) on a daily basis: spend less than you earn. It's rocket science.

[haveaniceday]

Anyone have any information on this scheme I can pass on to Thai relatives in law?

[zigistar]

So the goverment gone pay back iligal loans now..hmmm nice! I can imagine many fake loans will be in the books,those poor people cant pay anyway wether its a bankloan or from loansharks extremely high figures i see in those stats.i think this is avery very bad idea!

[TAWP]

Once new a Thai woman who made no secret of the fact that she lent money out at 10% per month.Im sorry for those who have to borrow at this rate, wonder what the real sharks charge?

Standard quote from 3 different lenders that my gf used some time back, was 20% per month.

And they have written contracts, take copy of ID card etc, i.e. is very organized.