PM satisfied with progress in addressing unregulated debt problem

Prime Minister Prayut Chan-o-cha is satisfied with progress in the government’s efforts to address unregulated debt problem, government spokesman Lt-Gen Sansern Kaewkamnerd said over the weekend.

He explained that a list of low-income earners who have unregulated debts has been prepared and sent to the Government Savings Bank and the Bank of Agriculture and Agricultural Cooperatives after they registered to receive help from the government.

After that, the two banks separately arranged for meetings between the debtors and the unregulated creditors to mediate the unregulated debts, he said, adding that the unregulated debts of 4,324 debtors in three provinces of Songkhla, Nakhon Ratchasima and Suphan Buri worth about 193 million had been settled amicably.

On top of that, Lt-Gen Sansern said the two state-owned banks had extended credits, amounting to 50,000 baht each to 180,898 low-income earners to the tune of 1,831 million baht to prevent them from falling into the unregulated debt trap.

The 1,831 million baht in credits which were lent out to the low-income earners accounted for 18.31 percent of total sum of 10 billion baht earmarked by the government. The rest of the money, about 7,620 million baht were set aside for low-income earners under the registration for state welfare project.

Lt-Gen Sansern said the prime minister had wanted the Finance Ministry to make clear to the low-income earners that the credits extended to them were not for free as they were required to enter into sustainable debt settlement procedure.