Bt40 bn to spice up village fund scheme

[Lite Beer]

Bt40 bn to spice up village fund scheme
The Nation

BANGKOK: -- The Finance Ministry is injecting Bt40 billion into the village fund scheme.

Finance Minister Sommai Phasee said today that the extra funding would be extended through the Bank for Agriculture and Agricultural Cooperatives and the Government Savings Bank.

A number of 78,255 villages will be entitled to the extra funding, designed to help low-income earners tackle debts borrowed from unorganised channels, finance their investment, and serve as emergency funds in light of economic slowdown.

The scheme has loaned to 13 million borrowers, with outstanding loans of over Bt200 billion.

"The fund is a key instrument in driving the grassroot economy," Sommai said.

While villages will be charged 5 per cent for the loans, they can charge borrowers upto 10 per cent per annum. The maximum borrowing period is at 5 years.

Each village is entitled to different sums of money. Those in "A" Class will be allocated Bt1 million.

The Village Fund was one of populist policies introduced by the Thaksin administration.

Source: http://www.nationmultimedia.com/breakingnews/Bt40-bn-to-spice-up-village-fund-scheme-30258113.html

-- The Nation 2015-04-16

[Anthony5]

Haha, they copy just everything from the evil Thaksin, and that is not restricted to only his populist policies.

[seajae]

difference is you do not have to be a red shirt to get it, thaksin was totally conditional on who you voted for. While this is designed to help them out it will once again be open to corruption from those that run it in the villages, it should be fully audited so that the so called head people dont make it conditional on anything and so that it isnt pocketed by them

[johna]

10 per cent per borrower is to high, people in don't borrow from the village fund they rent the money, paying the interest on the loan each year and rolling over the principle.

[bangkokfrog]

10 per cent per borrower is to high, people in don't borrow from the village fund they rent the money, paying the interest on the loan each year and rolling over the principle.

Yes, 10% is very high compared to the bank reference rate but less than credit cards and the 10-20% PER MONTH charged by loan sharks (at the cost of your life if you don't pay back).

[DonaldBattles]

In my area I don't think the money ever gets past the Puyai Baan. This is the 3rd big give a away by the government. They refuse to put in the property tax and the economy is down. Where is the money coming from. The Finance Minister has warned several times that they country does not have the money for these freebies. Where I live I never see the merchants charging tax which means they don't pay any.

[chooka]

Vote buying

[issanaus]

Vote buying

But we are constantly told there will not be elections - so why buy votes?

Give you statement does this mean that you are confident there will be elections?

[473geo]

If the loan is fully repaid in 12 months at 10% 44 billion with rice at 8-12 baht per kg

If loans run 5 years at 10% per year 60 billion to be repaid with rice at 8-12 baht per kg

A big ask

BAAC interest should be no higher than 2.5%

Village requires no more than 1 - 1.5% 'profit'

Just my suggestion for helping return happiness to the people

[BSJ]

If the loan is fully repaid in 12 months at 10% 44 billion with rice at 8-12 baht per kg

If loans run 5 years at 10% per year 60 billion to be repaid with rice at 8-12 baht per kg

A big ask

BAAC interest should be no higher than 2.5%

Village requires no more than 1 - 1.5% 'profit'

Just my suggestion for helping return happiness to the people

The last common rice crop around here returned 6-7baht a kilo.

[apetley]

10 per cent per borrower is to high, people in don't borrow from the village fund they rent the money, paying the interest on the loan each year and rolling over the principle.

Yes, 10% is very high compared to the bank reference rate but less than credit cards and the 10-20% PER MONTH charged by loan sharks (at the cost of your life if you don't pay back).

Some of the loan sharks charge between 20 and 50% interest PER DAY and all with the connivance of the local police where we live.

[Toknarok]

When my village got the 1m baht a few years ago, they decided to invest it in buying a large canvas canopy and many tables, chairs and coking utensils etc. These were to be used for weddings, funerals and the like. Residents of the village got to use them for free, but any other people who wanted to rent them have to pay. This has proven to be very popular in the district and these items are in constant use. The rentals obtained pay back the loan and interest.

[billd766]

Haha, they copy just everything from the evil Thaksin, and that is not restricted to only his populist policies.

Can you read and comprehend?

Where does it say that they are copying the scheme?

All I could see was that this government are injecting more money into it.

[billd766]

Vote buying

Well if this is what you call vote buying what would you call the original plan as it was introduced by your hero, Thaksin Shinawatra.

I would call what he did originally, vote buying too, wouldn't you?

[EyesWideOpen]

In my area I don't think the money ever gets past the Puyai Baan. This is the 3rd big give a away by the government. They refuse to put in the property tax and the economy is down. Where is the money coming from. The Finance Minister has warned several times that they country does not have the money for these freebies. Where I live I never see the merchants charging tax which means they don't pay any.

That is kinda what my first thought was. I have never done the Nakon Nowhere

living thing, but my understanding the Puyai Baan runs the village like a little

fiefdom and controls the money. So I suspect he and his relatives are throwing

a big party tonight....

[tonbridgebrit]

40 billion to spice up the village fund scheme. A step in the right direction. Now then, triple it, and memories of Thaksin might just fade away.

Do stuff that is good for lots of people, that's how you get support.

[jayboy]

Another day and yet another Thaksin populist policy given a solid endorsement.

[billd766]

Another day and yet another Thaksin populist policy given a solid endorsement.

But But Chooka said it is vote buying. (sorry)

Having said that, it was/is a good idea but only if it is used properly. It could be useful as seed capital for micro businesses similar to the scheme for women that was supposedly started by Yingluck.

Did that ever get off the ground or was it dumped by the PTP or the current government?

There was a similar scheme for women over in Bangladesh backed by the Grameen Bank that was doing very well.

http://pepbonet.com/2012/04/news/women-and-microcredit-in-bangladesh/

[Ricardo]

If the loan is fully repaid in 12 months at 10% 44 billion with rice at 8-12 baht per kg

If loans run 5 years at 10% per year 60 billion to be repaid with rice at 8-12 baht per kg

A big ask

BAAC interest should be no higher than 2.5%

Village requires no more than 1 - 1.5% 'profit'

Just my suggestion for helping return happiness to the people

Don't forget to allow for Bad Debts too !

Which is why it is so important to audit these funds regularly, who would ever bother about repayment, without the big stick ?

[473geo]

Village fund - pride and face ease the 'bad debt' risk

There are of course those who borrow further for a couple of weeks to pay back, and then repeat the loan, the few, if any, that have previously failed to repay would be unlikely to be accepted into the scheme that has run for years, or at best limited to small loans, the risk should be minimal.