November 19, 2009
The Bank of Thailand (BOT) announced that they are now creating new guidelines to close the financial gap between commercial lending and the poor. The guidelines will be announced soon. The BOT said that if banks choose not to open a microfinance program, they can appoint an agent to represent them in the community. The agents would take care of client to reduce the risk level and to reduce the cost of operating. The new guidelines will also discuss the option of allowing grocery stores, such as 7-11 to act a retail agents. The BOT will also remove the interest rate cap on loans. Banks will be able to decide interest rate limits themselves and according to the risk of the client. As a way to help people qualify for loans, the BOT will also allow group collateral. The goal is that the new microfinance loans will be short-term and easy to repay.
The BOT also expects a lot of collaboration in the microfinance sector between experts that could lead to joint ventures. All microfinance activities are supposed to start in early 2010.

Translated from Thailand Post Today