About 77% of Thai village funds seek loan under scheme

[Jonathan Fairfield]

About 77% of village funds seek loan under scheme

BANGKOK:-- About 46,489 village funds have so far applied for the government's loan scheme to inject money into well-performing village funds, Government Spokesman Maj-General Sansern Kaewkamnerd said Wednesday.

This is equivalent to 77.64 per cent of the target of 59,875 village funds in category A and B.

Sansern said this meant 2.38 million villagers would benefit directly from this scheme, which came with a condition that village funds must not use it to refinance old debt.

Contract signings by all the eligible village fund applicants should be completed by December 31, he added.

Source: http://www.nationmultimedia.com/breakingnews/About-77-of-village-funds-seek-loan-under-scheme-30271793.html

-- The Nation 2015-10-28

[Emster23]

"government's loan scheme to inject money into well-performing village funds" that ought to put an end to those "well performing" classifications.

[FangFerang]

I am somewhat baffled. If they are well-performing, why throw money at them? Seems a bit populist to me, and a dose of Prayuthaksin economics.

They discuss one usage that the loans cannot be used for, but no mention of what it is intended to be used for.

Am I missing something here? Nope, I looked three times.

Maybe another news source has an article instead of an announcement.

[shirtless]

If they are well performing there should be money in them from previous loans that have been repaid, what is the default rate as a percentage on these ,sounds like more hot air and another dud scheme to keep the poor in money.

[keemapoot]

If they are well performing there should be money in them from previous loans that have been repaid, what is the default rate as a percentage on these ,sounds like more hot air and another dud scheme to keep the poor in money.

If it's the program I think it is, it actually performs pretty well with a very limited but helpful plan: Every registered home owner in the mooban (village) is eligible, without condition, to borrow an amount (starting at about 10,000) for one year at a low simple interest rate.

The payback is very simple. Full balloon payment at the end of 12 months, plus the small amount of interest (1200 on 10,000 loan), and then if you did not default, you are eligible to double down or more the next year based on your good payment history.

These things get parceled out to family members, etc., and if anyone defaults, they don't get into the program the next year.

[PEAP]

Keemapoot's village seems different from ours. Our "normal" village fund annually lends up to 20,000 Baht for one year to any villager at 2% interest PLUS 200 Baht to the Administrator for his fund(?). Payment in full is achieved by the majority by means of "A"; borrowing for a few hours from "B", loan is repaid, then new loan granted. Next step is "B borrows from "A" , repays his loan and Status is as previously. Village gains 2% per borrower + Admin. fee(?). All loans paid then re issued.

In addition to this scheme, during the last few weeks, The Government Bank Representative has come to the village and upon production of an I.D. Card, (Own or Borrowed from another villager ) and hands out cash loans up to 20,000 Baht at 0% interest for two years thence 6% for ever.

Who said Household debt was increasing?

[Emster23]

Throwing bad money after good?

[keemapoot]

Keemapoot's village seems different from ours. Our "normal" village fund annually lends up to 20,000 Baht for one year to any villager at 2% interest PLUS 200 Baht to the Administrator for his fund(?). Payment in full is achieved by the majority by means of "A"; borrowing for a few hours from "B", loan is repaid, then new loan granted. Next step is "B borrows from "A" , repays his loan and Status is as previously. Village gains 2% per borrower + Admin. fee(?). All loans paid then re issued.

In addition to this scheme, during the last few weeks, The Government Bank Representative has come to the village and upon production of an I.D. Card, (Own or Borrowed from another villager ) and hands out cash loans up to 20,000 Baht at 0% interest for two years thence 6% for ever.

Who said Household debt was increasing?

Yeah, I think your analysis is correct, except for the interest rate and maximum loan amounts may differ.

But, it's basically a big shell game every year enabling the villagers to get non-qualifying loans and then scramble to deposit the cash for two weeks or so every year, then borrow more than the year before. Everybody gets in on the act as you say, borrowing from Peter to pay Paul.

[speedtripler]

the only problem i can see .is where are they going to find loan+ interest if they already spent it on a new iphone or motorbike ?

if theyre broke this year ,why would they be wealthy next year ??

[Chao Lao Beach]

"which came with a condition that village funds must not use it to refinance old debt"

So poor people MUST STAY deep in debt, so rich people can help them out and buy their chanotes when they are up the creek.