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»An online training program for people interested in microfinance. Course materials are in English and in Thai.

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29 April, 2010

More Cheap Loans For Thais on the Way

MCOT.NET
PHUKET, April 28 (TNA) – Thailand’s Finance Minister Korn Chatikavanij on Wednesday said that the ministry will consider tax measures and low-interest loans to help business operators in the Andaman Sea coastal provinces affected by the ongoing political crisis... more can be found by clicking here.

THE NATION
The Bank for Agriculture and Agricultural Cooperatives plans to provide loans totalling Bt420 billion to the rural sector this year, BAAC president, Luck Wajananawat said....more can be found by clicking here.

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08 April, 2010

Farmers' debt scheme gets cabinet nod

50% reduction offered on total of B80 bn owed

The cabinet has endorsed a new debt restructuring scheme for 510,000 farmers who will be offered a 50% reduction on the 80 billion baht they owe and a waiver on interest charges.

A mid-year budget of 1.14 billion baht was approved yesterday to allow the scheme to get under way this year with training and personnel.

A further 2.2 billion baht will be allocated next year and 2.53 billion baht the following year to finance it.

Much of the money will go towards identifying the people eligible for the restructuring programme and to organising career redevelopment training for them.

About 2,000 temporary staff will be employed to handle the work, said Deputy Prime Minister Sanan Kachornprasart, who chairs an ad-hoc committee set up to oversee the scheme.

The 510,000 farm debtors owe a combined 80.4 billion baht.

A total of 5 million rai of farmland has been signed over as surety for the loans which have now become bad debts.

The first batch of about 80,000 farmers should be able to sign debt-restructuring contracts with state banks which have been assigned to implement the scheme within six months, Maj-Gen Sanan said.

The 80,000 debtors were all members of the Farmers' Rehabilitation and Development Fund (FRDF). The others who are not members of the fund can enter the debt restructuring scheme later.

Of the non-FRDF members, 350,000 had borrowed from state banks and financial institutions while the rest had debts with privately-run institutions.

Each of the debtors will receive a 50% reduction on their principal. The interest will be waived.

To become eligible, each farmer had to guarantee to repay their restructured debt within 15 years, the maximum repayment period. If they failed to do so, they would then have to pay the full original amount plus interest.

Each applicant could not owe more than 2.5 million baht.

Commercial banks were expected to join the debt restructuring programme if it proved successful, said Khunying Supatra Masdit, an adviser to the prime minister who sits on the Sanan-led committee.

Kanok Wongtrangan, an adviser to Prime Minister Abhisit Vejjajiva, said the scheme was not intended to clear the debts completely.

Source: Bangkok Post

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01 April, 2010

BAAC Backs Loan Cancellation

BAAC backs B80bn plan

A government proposal to restructure up to 80 billion baht of farm debt is an opportunity for the state-owned Bank for Agriculture and Agricultural Co-operatives to clean up its loan book, says bank president Luck Vajananawat.

The debt moratorium programme would tentatively halve the debt burden for farmers with problem loans of up to 2.5 million baht. Accrued interest would be waived and the remainder of the obligations rescheduled over 15 years.

The plan, spearheaded by Deputy Prime Minister Sanan Kachornprasart, will be presented to the cabinet for approval next month.

Mr Luck said the proposal would help the bank deal with its current non-performing loans.

"If these [non-performing] loans are not addressed in some fashion, eventually they will go completely bad, forcing us to set aside 100% provisions," he said.

The BAAC has about 51,000 customers with combined debts of 12 billion baht as distressed assets under rehabilitation through the Farmers' Reconstruction and Development Fund.

The proposal would cover farmers that were members of the fund as of the end of last year. But participants must agree to enroll in BAAC training programmes on financial management.

Farmers who fail to meet their rescheduled payment obligations would become liable for the full amount of the loan. Participating creditors, including the BAAC, would also have to agree not to enforce their collateral rights to any outstanding debt.

Mr Luck said the BAAC, as well as other private banks, would likely seek compensation from the government to help offset the costs of the programme.

Source: Bangkok Post

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