GSB to set aside anther 50 billion baht in soft loans for SMEs



BANGKOK: -- Government Savings Bank are to meet 19 financial institutions on Thursday to discuss the extension of another tranche of 50 billion baht in low-interest soft loans to small and medium-sized enterprises.

GSB director Chartchai Payuhanaveechai said Wednesday he expected soft loans could be extended immediately after the signing of an agreement between GSB and the 19 financial institutions on January 13.

The maximum amount of loan will not exceed 10 million baht instead of 50 million baht as was the previous case.

Mr Chartchai urged SMEs who re interested to apply for the soft loans to contact the 19 financial institutions and the GSB. He expected the GSB to be able to provide up to 30 billion baht in loans to the SMEs.

Regarding the GSB’s performance last year, he said that bank deposits from members of the public increased 3-4 percent bringing the overall deposits of the bank to rise by six percent whereas credits grew by 6 percent.

Earlier, GSB set aside 100 billion baht in soft loans to be extended to SMEs through several commercial banks. The amount was exhausted in two months with 13,000 SMEs applying for loans averaging 8 million baht each.

Source: http://englishnews.thaipbs.or.th/gsb-to-set-aside-anther-50-billion-baht-in-soft-loans-for-smes


-- Thai PBS 2016-01-07

Sucking more people into debt will not solve the country's problems. Many small business's will go under with larger debts than they would have done before as they will use this as a way to prop themselves up when they should be closing down.

Yes! More debt! Then, the forgiveness of debt,as a "gift", and it's not a giveaway. No repercussions.

Wasn''t this the same or a similar program that was abused by many of the borrowers as well as several dozen of those civil employees involved in granting /approving the loans that were made???? If this is the case the old balking mule approach may be first on the agenda, for applicants and civil employees both.

Hit them between the ears with a 2x4 to get their attention and forewarn what happens to non payors and those taking a cut of the funds.

There's somehting odd about this approach to stimulate the economy.

On the one hand the government committed Thailand to a 350-500 billion baht loan payable in 25-30- year for the Chinese dual rail project to be completed by 2020.

On the other hand the government will obligate the Thai taxpayers to cover the cost for below market interest on 50 billion baht in soft loans for SME's. This is in addition to the 20 billion baht already made in soft loans to rice and rubber farmers.

The two approaches to stimulate the economy seem counterproductive. But both in the long run may hamper the Thai treasury to meet nondiscretionary obligations such as health care and social security.