BAAC reveals that it is requesting debt suspension for more than 1.85 million farmers, with a key amount of more than 250 billion baht, and is preparing to expand to the second phase along with a 0.25% loan interest reduction to support the recovery of vulnerable groups.
Mr. Cholavan Amornevat, Deputy Minister of Finance as Chairman of the Board of DirectorsBank of Agriculture and Agricultural Cooperatives (BAAC) He said it is a policy of Mr. Sita Thavisin, Prime Minister, who is committed to helping people and small and medium enterprise owners, including those suffering from economic problems. You have the opportunity to recover and adapt at a reasonable financial cost.
Reducing interest rates on loans for 6 months to help 1.2 million vulnerable groups.
BAAC as a specialized state financial institution has come to respond to policy and participate in solving household debt problems. By lowering interest rates for retail customers or other measures that can ease the burden, help create opportunities and stimulate more investment in the manufacturing sector.
BAAC recognizes the need to operate in accordance with policies and guidelines that are consistent with the Association of State Financial Institutions. Therefore, the MRR loan interest rate has been reduced by 0.25% for 6 months for farmers, vulnerable customers and SMEs facing production problems. This leads to reduced ability to repay debts, including defaulting loan debtors who are subject to debt restructuring. There are more than 1.2 million customer accounts that will benefit.
This is in order to reduce the burden of expenses. And supporting customer recovery at a time when the economic recovery is not yet complete and comprehensive. Valid from May 1 to October 31, 2024.
Request to suspend debts of more than 1.85 million farmers, the main amount is more than 250 billion baht – preparing for the second phase
Mr. Cholavan said that in the past, BAAC has consistently issued measures to assist small farmers – measures to suspend debt payments for small farmers in accordance with government policy for farmers whose total outstanding debt on all contracts as of September 30, 2023 does not exceed 300,000 baht.
There are 1.85 million people who have reported wanting to join the action through the BAAC mobile app, with funds worth more than 257,000 million baht.
Of the number of clients who reported their intention to join this procedure, more than 1.39 million people signed the memorandum of understanding attached to the loan contract, or more than 90% of those who reported their intention to join the procedure.
Among this number, there are 130,000 clients who have expressed their desire to attend a course to restore professional potential under the concept of “Leading Market, Adding Innovation, Increasing Income.” The bank will conduct professional rehabilitation for clients participating in the course and suspend debt payments for 300,000 clients by September 2024.
It is also preparing to expand measures to help small farmers. The second phase of the farmers' debt suspension project will be approved soon.
Support low interest loans
In addition, BAAC always pays attention to farmers' debt problems in a comprehensive manner. With financing support through loans at low interest rates. To increase liquidity for spending and reduce the burden on the family instead of borrowing from outside the system, such as loans on your behalf. MRR interest rate and quick loan for good people, credit limit of 20,000 million baht for village health volunteers and village health volunteers, interest rate of 0.67% per month or installments of only 500 baht per month, etc.
Participation in debt management of farmer clients both in-system and out-of-system debts through the BAAC Debt Report Project which managed to resolve the problem of out-of-system debts and return them to the BAAC system for 676,677 cases amounting to more than 51,934 million baht, and credit measures to assist and support informal debts with 545 1 million baht of loans already paid.
In addition to providing advice on debt management and debt restructuring. Including freezing interest rates on loans during policy periods of interest rate adjustments and other financial institutions that increase interest rates. This reduces the debt repayment burden on farmers and hence BAAC is an important mechanism to help take care of customer farmers. Which is the majority of the country to be strong that has the ability to generate income and this will affect the development of the comprehensive economic system of the country to achieve sustainable growth.
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