IDIOTIC...how about arresting the loan sahrks and then CANCEL all the loans outstanding?

thats a very sensible suggestion terry

The reason many people borrow from loan sharks, is that they are not credit worthy, and therefore cannot borrow from a bank.

If banks are to cover loan shark loans, then what prevents people from borrowing money from a fake loan shark (maybe their own family), and then go to the bank and get the bank to pay the "loan shark", which effectively results in them getting the bank loan they were not entitled to in the first place?

As someone already mentioned, the loan sharks should be arrested, not paid by the banks. I suspect loan shark "business" will boom once the loan sharks realise that their unsecured high interest loans are effectively covered by the government.

Even worse, those who have borrowed money will likely never be able to pay back the money to the bank, so the tax payers will, once again, be paying the bill as the bank is publicly owned.

The mentality of persons who borrow money from informal money lenders is different. While receiving money from the GSB may offer some relief from the usurious interest rates charged by the informal money lenders, there is NO GUARANTEE the borrowers will stop borrowing money from them. So this is really just a waste of people's money and the people who will be MOST happy are the informal money lenders. Perhaps you can guess who they are...

Another populist measure that is pushing Thailand further and further into debt.

What will the investment houses think of a country that promotes such rediculous programs ?.

Thailand is already on the "watch list" for its poor economical performance and ever rising personal bebt problems.

It wont be too long before we get 50 Baht to a $

Edited July 7, 201412 yr by Cake Monster

why not a loanshark hotline to report those criminals ?

so now what, they will make it easier for the loan shark to tell the "victims" : just get a loan at the bank

should they put a guaranteer on this loan at the bank, aka, the loanshark ?