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Govt Savings Bank plans Bt150 billion loans to lower-income people


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Govt Savings Bank plans Bt150 billion loans to lower-income people

By The Nation

 

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The Government Savings Bank (GSB) expects to provide loans of up to Bt150 billion to more than 2 million lower-income people, the bank’s president and chief executive officer, Chatchai Payuhanaveechai, said at seminar on Saturday.

 

 

Speaking at the “Join forces to drive sustainable economic development; Pracharat creates Thailand” seminar at Impact Muang Thong Thani, he said the bank will approve on average loans of Bt75,000 per person to small retailers and street vendors, aiming to target 100,000 retailers with total loans of Bt5 billion.

 

Loans for street food will not exceed Bt3 million per case, and loans for lower-income people to restructure their shark loans will not exceed Bt50,000 per case, he said.

 

“All these measures are ways to support lower-income people to improve their quality of living and have enough cash flow to operate their businesses,” he said.

 

Source: https://www.nationthailand.com/business/30376541

 

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-- © Copyright The Nation Thailand 2019-09-22
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20 minutes ago, rooster59 said:

 

The Government Savings Bank (GSB) expects to provide loans of up to Bt150 billion to more than 2 million lower-income people,

Creating bonded labor in a never ending cycle of debt. Seems the 1% are not satisfied with a mere 66% of the wealth.....let's push it to 80%! The one area they can genuinely claim to be number one in the world!

 

 

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The tried trick of every government to keep their restless population happy and their attention away from disclosure of the government doing is by throwing money at them to loan them money to cover old loans to the government and loan sharks, and as long as i have known thai people, most of them live in this vicious debts circles of loans,

1 hour ago, rooster59 said:

Loans for street food will not exceed Bt3 million per case

And since when a street food vendor will use 3 million baht even if they open a proper restaurant? so right there you can see that this idea is at best half baked...

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150 billion seems to be a lot on offer. It does ring of debt and all the problems that go with that.

 

I haven't traveled that much of the world. Is it normal to have banks with names connected to the government and military? Working in education at public universities or other schools in Thailand, you are often have to use KreungThai bank as well. That bank seems to deal with the tax refunds. Is it also connected to the government in some way more than normal? IS there any bank not connected to the government or other institutions in Thailand?

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I'm not quite sure how more loans and more debt for Thailand's lowest income population has anything to do with creating sustainable economic development....

 

And even if you make the assumption that these new loans will have better terms than the loan shark variety that these folks may already have, that assumes they'll manage their debt responsibly, and not just go out and add new loan shark loans on top of the new GSB loans they've just received. 

 

Prudent financial management and education/awareness among the ordinary Thai citizen is appalling at best. Buy for today, and don't worry about how you're going to pay for it in the future.

 

 

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2 hours ago, TooBigToFit said:

150 billion seems to be a lot on offer. It does ring of debt and all the problems that go with that.

 

I haven't traveled that much of the world. Is it normal to have banks with names connected to the government and military? Working in education at public universities or other schools in Thailand, you are often have to use KreungThai bank as well. That bank seems to deal with the tax refunds. Is it also connected to the government in some way more than normal? IS there any bank not connected to the government or other institutions in Thailand?

See https://forum.thaivisa.com/topic/1103604-state-owned-thai-bank-which-one-for-1st-account/

 

There are 6, 100% state-owned banks, 1 majority state-owned bank (KreungThai) and 1 minority state-owned bank (TMB).

Is this normal? I'd say given the utilities are state-owned, the national air carrier is state-owned as well as major state-owned enterprises that is would seem normal for Thailand.

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6 hours ago, rooster59 said:

The Government Savings Bank (GSB) expects to provide loans of up to Bt150 billion to more than 2 million lower-income people

I don't understand how a succession of loans can create a sustainable livelihood for lower-income people. As we've seen over the last five years, such approach only exacerbated income inequality.

 

What happened to the very well thought out concept of the "negative income" approach to adequate income (AI) and earned income tax credit (EITC) schemes on informally employed, low-income workers in Thailand? These two schemes have had widespread acceptance and successful implementation around the world.

With AI representing a benchmark for the minimum work pay that can allow workers and their families to achieve a median standard of living the EITC can be used to reduce inequality, narrow the poverty gap and increase consumer purchasing power. 

 

Ref. Earned Income Tax Credit Policy with Adequate Income as a Benchmark for Informally Employed Thai Workers, Thailand and The World Economy, Vol 36, No. 3, September-December 2018.

162279-Article%20Text-449783-1-10-20181224.pdf; https://www.tci-thaijo.org › index.php › TER › article › download

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11 hours ago, rooster59 said:

...loans for lower-income people to restructure their shark loans will not exceed Bt50,000 per case.

As "shark loans" can end up with 100 percent interest or more a year, it can be a great relief to have the loan replaced by a bank loan with a "normal" interest only...????

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13 hours ago, rooster59 said:

The Government Savings Bank (GSB) expects to provide loans of up to Bt150 billion to more than 2 million lower-income people, the bank’s president and chief executive officer, Chatchai Payuhanaveechai, said at seminar on Saturday

And increase the household debt trap further!

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People selling street food,its a cash business,they buy in the morning,

sell the rest of the day,they have cash to buy the next days goods and

some profit,offering them loans,will only get them into debt,

Debt seems to be the new black,everybody wants some.

regards worgeordie

 

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