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03 December, 2014

 

Banking on Thaksin Village Fund success, Thailand’s junta pumps more micro credit to villages


Nov 28, 2014

Khao Sod, a news group, reports Thailand’s Dictator junta, is following up on Thaksin’s “Village Fund” by planning to pump about US$30,000 into each Village Grouping (Source).

Khao Sod reports, the Thaksin’s “Village Fund” scheme, which pumped about US$5 billion into village, to stimulate the economy, then recovering from the Thai Financial Crisis, over the last 13 years, the fund, which is a micro-level, grass-roots loan program, have grown to about US$7 billion, meaning have generated a great deal of profit, for the Thai state, with an overall, loan default, of only about 4%, lower, than most modern banking loan default rates.

When Thaksin, originated the “Village Fund” program, Bangkok’s traditional elite, lead by the Bangkok traditional elite serving, Thailand Developmental Research Institute, came out to criticize the “Village Fund, as a waste of money. Over the years, there has been much debate, as to the effectiveness of micro credit, such as the Thaksin fund, with many saying micro credit does not help the poor move up the economic ladder, while other, said micro credit helps.

The latest on micro credit, on global level, is that the globe’s most comprehensive research into micro credit, found that micro credit, does indeed help the poor move up the economic ladder.

Source: KhaoSod



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