Loan sharks to be persuaded to enter a structured loan system

[webfact]

Loan sharks to be persuaded to enter a structured loan system

BANGKOK, 19 April 2016 (NNT) - The government is considering including loan sharks in a system that offers interest rates similar to banks.

Deputy Prime Minister Somkid Jatusripitak has instructed the Government Savings Bank (GSB) to study the possibility of convincing informal lenders to extend loans through a government system. The findings will be presented to the Cabinet for consideration in May.

The Deputy Prime Minister also attended a meeting of the GSB, the Government Housing Bank, the Bank for Agriculture and Agricultural Cooperatives and the Export-Import Bank of Thailand. The discussions centered around the banks' efforts to implement various government policies.

Dr. Somkid said he was satisfied with their overall progress, but admitted that he preferred to see more farmers applying for loans. He believed the farmers have stopped growing crops due to tepid demand.

-- NNT 2016-04-19

[bangkokfrog]

What is wrong with these guys? They couldn't control lottery ticket prices, so how could they possibly imagine the loan shark mafia agreeing to go from 20%+ per month to 10-20% per year!

[colinneil]

Now look here chaps please stop overcharging people, come into the fold.

Please be good boys from now on ok.

Who dreams up these crazy ideas?

[stoneyboy]

For the bloke in the other thread regarding Thais and lying.

Here is another shining example of another pack of em.

[Pib]

I'm sure the informal lenders (a.k.a., loan sharks) will rush to join this govt program.

And I love the attention getting headline of Loan sharks to be persuaded...but then the article just said the govt asked GSB to study the possibility...

The National New Bureau of Thailand articles sure make the govt sound like everything the govt does or proposes is an outstanding program and all but a done deal. Of course, as the a mouthpiece for the govt the NNT is just doing their job in being a cheerleader of sorts.

[Moonmoon]

I never believe in loans. Its a vicious cycle. especially with political situation in Thailand. Elected government and everything is good and everyone starts borrowing taking out loans. Coup happens and economy goes down and ppl lose jobs lose business and cannot finance loans anymore and starts losing their mortgages and cars. Its happening over n over again every few years. Who stands to gain?

[carstenp]

We can't stop them, so let's make it legal

[CantSpell]

Coming soon at a 7/11 store near you....

"Loan shark license" with BoT endorsement...

Seriously, those people are leading the country??

[jaltsc]

"The government is considering including loan sharks in a system that offers interest rates similar to banks."

What's next, unionizing bank robbers?

Edited April 19, 2016 by jaltsc

[Inn Between]

Is it always April 1st for this government?

[kimamey]

I'm sure the informal lenders (a.k.a., loan sharks) will rush to join this govt program.

And I love the attention getting headline of Loan sharks to be persuaded...but then the article just said the govt asked GSB to study the possibility...

The National New Bureau of Thailand articles sure make the govt sound like everything the govt does or proposes is an outstanding program and all but a done deal. Of course, as the a mouthpiece for the govt the NNT is just doing their job in being a cheerleader of sorts.

Yes we've both just commented on their "Thailand and U.S. to expand economic ties" story and now here another one. If this goes on much more I'll be calling the Daily Star a newspaper.

This does seem to ignore the reason for loan sharks. People go to them not because they like paying high interest rates but because they can't get a loan from the banks. Probably because they're a high risk. There might be some who charge reasonable rates and might be persuaded but even then they might be worried that they might lose out through tax ect.

Maybe something like credit unions would be a good idea assuming there isn't something similar already. The problem is still that lending needs to be sensible and if a loan is refused then the loan shark is the next option

[lostinisaan]

First time, only shattered knee caps. Second time you better hang yourself? Sounds great to me.

[leeneeds]

Can you please wake me,

next school opens for pick pockets

then a valuation school for recievers of stolen goods,

[kimamey]

Now look here chaps please stop overcharging people, come into the fold.

Please be good boys from now on ok.

Who dreams up these crazy ideas?

Not sure but generals and admirals would be my guess. I doubt they know much about loan sharks. Well not about personally borrowing from them.

[lostinisaan]

"The government is considering including loan sharks in a system that offers interest rates similar to banks."

What's next, unionizing bank robbers?

Underpaid foreign teachers who suddenly become bank robbers?

[ratcatcher]

Can you please wake me,

next school opens for pick pockets

then a valuation school for recievers of stolen goods,

There is one listed.... http://www.urbandictionary.com/define.php?term=Fence

[docshock13]

Here is an idea: liberalize bank lending policies so that people who REALLY need a loan can get one and lock up the loan sharks!

Everybody wins.

[bark]

555

[noosard]

Dr. Somkid

He believed the farmers have stopped growing crops due to tepid demand.

He obviously does not read the papers, watch or listen to the news

There is a drought

PM banned the growing of the main crop till at least July

[WhizBang]

Oh my, what are these numpties smoking?

Joining a legalized loan system would involve (I would hope) controls on the amount that can be charged and what can (and cannot) be done on default.

I am quite sure the loan sharks would want no part of such a system.

EVERYTHING in Thailand is broken and the fools running the show are clueless. The longer these self righteous morons remain in power, the deeper Thailand falls.

[klauskunkel]

criminals are being 'persuaded' to do something, while the rest of the population is being ordered.

[ratcatcher]

Here is an idea: liberalize bank lending policies so that people who REALLY need a loan can get one and lock up the loan sharks!

Everybody wins.

Unfortunately, many times the people who use loan sharks don't "really" need a loan, but they desire to have (for face reasons) a new phone or Ipad or big TV or whatever. They only think of paying the interest while the principal gets further away.

[soalbundy]

Here is an idea: liberalize bank lending policies so that people who REALLY need a loan can get one and lock up the loan sharks!

Everybody wins.

Unfortunately, many times the people who use loan sharks don't "really" need a loan, but they desire to have (for face reasons) a new phone or Ipad or big TV or whatever. They only think of paying the interest while the principal gets further away.

I think you are talking testicles.

[ThailandLOS]

Great, now they can join the other loan sharks in suites and ties, to which criminal legislation doesn't apply.

[ThailandLOS]

Here is an idea: liberalize bank lending policies so that people who REALLY need a loan can get one and lock up the loan sharks!

Everybody wins.

Don't you know that people who really need a loan won't get it from the bank?

[docshock13]

Here is an idea: liberalize bank lending policies so that people who REALLY need a loan can get one and lock up the loan sharks!

Everybody wins.

Unfortunately, many times the people who use loan sharks don't "really" need a loan, but they desire to have (for face reasons) a new phone or Ipad or big TV or whatever. They only think of paying the interest while the principal gets further away.

Agreed 100%. However, there is a small group of Somchai's that need small, short-term loans to fix their tractor etc. that may noy qualify for a traditional loan and are forced to seek the "help" of loan sharks. It would be nice if the banks could relax some of their lending policies (perhaps with some incentive from gov't). It wouls be good for the banks, good for the consumer and good for the economy. But, ooops! I am dreaming again.

In any case, you are spot on. Not a pot to piss in, but have all the latest gadgets and up to eyeballs in debt. Sad really.

[Dumbastheycome]

Many who borrow from loan sharks start out with a small loan. When they fail to pay the interest they borrow a little more to pay ! The sharks extend the credit for as long as the total does not exceed any nominated security. Just like Banks the top end security is a chanote ! Many of the boys in black on bikes doing the collecting are also in the same boat. It is a sad trap.

" Persuading" loan sharks to agree to enter into a regulated system would surely require a massive attitude adjustment. And how to legitimize such an action when offering/ providing personal loans is not actually illegal.

[ratcatcher]

Here is an idea: liberalize bank lending policies so that people who REALLY need a loan can get one and lock up the loan sharks!

Everybody wins.

Unfortunately, many times the people who use loan sharks don't "really" need a loan, but they desire to have (for face reasons) a new phone or Ipad or big TV or whatever. They only think of paying the interest while the principal gets further away.

I think you are talking testicles.

Why don't you say what you really think? Like "That's a load of balls"?

See post #27 where a poster has kindly explained what I omitted to say.

[fakename]

And, who controls the baseball bats? Will they be in a government warehouse, waiting to be deployed when the loan is not payed back?

[tuanku]

Cutting through the bull crap, the people running the country have no clue how to tackle loan sharks, recognising that the RTP are deeply involved in all aspects. So they think it is a good idea to show their weakness by pleading with them to be like banks. probably they will happily lend them a squad of goons to help collect the loans if they will turn over a percentage to the military.

The banks won't loan because the people have no collateral to offer and no intention of paying back the money unless they are forced to.

That's why the interest is so high and the strong arm tactics so extreme. Lenders have to maintain a reputation for ruthlessness to stop people defaulting on the loans.

Anyone who has "lent" money to their wife's family members for bail, or sickness or other compelling reasons will probably recognise the way that loans without forced repayment eventually become gifts [saves a lot of hassle if you just make it a gift from the start I have found]

The oddest thing of all is not that these out of touch, loony, impractical and downright dangerous ideas are floating around - you get the same with any bunch of reactionary old men, just look at this forum, but that someone in "government" thinks its a bright idea to make a press release on it, and furthermore to translate it into broken English so us foreigners can have a good laugh. They just don't get it!