Thai Government – Government House news – BAAC. Reduce interest rates on MRR loans by 0.25% to support the recovery of vulnerable groups.

26/04/2024

print

BAAC cuts interest on MRR loans by 0.25% to support recovery of vulnerable groups.

The BAAC announced a reduction in the MRR loan interest rate by 0.25 percent for a period of 6 months for vulnerable farmer customers and SMEs who are experiencing production problems that reduce their ability to repay debt. Including NPLs debtors who are undergoing debt restructuring.

The BAAC announced a reduction in the MRR loan interest rate by 0.25 percent for a period of 6 months for vulnerable farmer customers and SMEs who are experiencing production problems that reduce their ability to repay debt. Including NPLs debtors who are undergoing debt restructuring. To reduce the burden of expenses and support the recovery of customers while the economy has not fully recovered and is not thorough, effective from 1 May. It is revealed that in the past the BAAC has issued measures to help farmers through the debt payment moratorium project for small farmers. More than 1.396 million people have already received more than 201,000 million baht in funds, or more than 90 percent of those who have reported their desire to join the project. Ready to expand assistance measures through the Debt Suspension Project Phase 2 soon.

Mr. Chulaphan Amornvivat, Deputy Minister of Finance As Chairman of the Board of Directors of the Bank for Agriculture and Agricultural Cooperatives (BAAC), he said that from the policies of the Prime Minister, Mr. Settha Thavisin, who is committed to helping the people, SMEs entrepreneurs, including those who are experiencing problems. economy There is an opportunity to recover and adjust under the appropriate cost of money. BAAC, as a specialized financial institution of the state. Has come to respond to policy and participate in resolving household debt problems. Through reducing interest rates for retail customers or other measures that can reduce the burden Help create opportunities and stimulate more investment in the manufacturing sector.

BAAC is aware of 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 percent for a period of 6 months for farmers, vulnerable customers and SMEs that are experiencing production problems. causing the ability to repay debts to decrease Including NPLs debtors who are undergoing debt restructuring. There are more than 1.2 million customers who will benefit from this in order to reduce the cost burden. and supporting the recovery of customers during a time when the economic recovery is not yet complete and inclusive. Effective from 1 May – 31 Oct. 2024.

Mr. Chulaphan said that in the past, BAAC has continuously issued measures to help small farmers through Measures to suspend debt payments for small farmers according to government policy For farmers with total outstanding debt of all contracts as of September 30, 2023, not more than 300,000 baht. There are 1.85 million people who have reported their wish to join the measure through the BAAC Mobile application, with principal amounts of more than 257,000 million baht. Among the customers who have reported their desire to join the measure, more than 1.39 million have signed a memorandum of understanding at the end of the loan contract, or more than 90 percent of those who have reported their intention to join the measure. And of this number, there are 130,000 customers who have expressed their desire to attend a course to restore occupational potential under the concept of “leading market, additional innovation, increasing income”. The bank will carry out occupational rehabilitation for customers who participate in the measure. Suspension of debt payment for 300,000 people by September 2024. In addition, it is also preparing to expand measures to help small farmers through the debt moratorium project, Phase 2, soon.

In addition, BAAC has always taken care of farmers’ debt problems in a comprehensive manner. With funding support through low interest rate loans. To increase liquidity for spending and ease the burden on the family instead of borrowing money outside the system, such as loans on behalf of you. MRR interest rate and quick loan for good people, credit limit of 20,000 million baht for members of Village Health Volunteers and Village Health Volunteers, interest rate of 0.67 percent per month or installment payments of only 500 baht per month, etc. Participation in managing customer debt farmer Both debt within and outside the system through the BAAC Debt Report project, which has been able to resolve the problem of debt outside the system and return it to the BAAC system for 676,677 cases, amounting to more than 51,934 million baht, and Credit measures to help and support informal debt 545 million baht of loans has been disbursed, along with providing advice on debt management and debt restructuring. Including freezing interest rates on loans during periods of policy interest rate adjustments and other financial institutions increasing interest rates. This reduces the debt repayment burden for farmers. The BAAC is therefore considered an important mechanism for helping to take care of customer farmers. which is the majority of the country To be strong Have the ability to generate income This will affect the development of the country’s overall economic system for sustainable growth.