Bangkok, The Chairman of the Thai Chamber of Commerce and the Board of Directors of the Thai Chamber of Commerce revealed proposals from the private sector in the three southern border provinces. Requesting the government to review and expand assistance measures for entrepreneurs that will expire soon. So that the private sector can borrow money to continue its business.
Mr. Sanan Angubolkul, Chairman of the Board of Directors of the Thai Chamber of Commerce and the Board of Trade of Thailand Revealed after attending a meeting to listen to proposals from entrepreneurs in the 3 southern border provinces. Regarding measures to help entrepreneurs in the area from unrest and to encourage entrepreneurs to continue investing in the area. whose objective is working capital and investment This is a project that has been in continuous operation since 2005 in the form of loans with relaxed interest rates. The interest on the loan will be 1.5 percent per year and the government will compensate the interest on the total loan amount of 25,000 million baht to financial institutions at 2 percent per year. At present, this measure will end according to the Cabinet resolution and the entire loan must be paid. Completed by June 30, 2025.
This will vary according to the credit limit received, causing entrepreneurs in the area to reflect the problem to the Thai Chamber of Commerce that many entrepreneurs currently receive credit lines. You may not be able to prepare for reimbursement in time. As a result, the burden of interest costs is immediately higher by 2 - 3 times. From the assessment, it was found that there are entrepreneurs in the 3 southern border provinces. Approximately 4,890 people have already received loan approval (as of December 31, 2022), totaling 20,872 million baht from a total project limit of 25,000 million baht. It can be seen that the government compensates financial institutions for interest costs in a small amount. and within the original framework set If compared to the problems that may arise from the operator being unable to comply with these terms and conditions. This will increase the risk of bad debt (NPL) situations and affect the competitiveness of local entrepreneurs.
According to discussions between entrepreneurs in Pattani, Yala and Narathiwat provinces and the Thai Chamber of Commerce, an open proposal has been sent to the Prime Minister. Through the Chief Advisor to the Prime Minister (Mr. Kittirat Na Ranong) on ??December 19th to consider and review the assistance guidelines as follows.
1. Urgent proposal - Request the Cabinet to pass a resolution to consider delaying the loan payment policy in order to reduce the loan amount, both in the amount not exceeding 50 million baht by Dec. 31, 2023, and in the amount not exceeding 20 million. baht within December 31, 2024 for at least 1 year to resolve problems and determine loan repayment guidelines in line with the ability of entrepreneurs. Through the management committee for providing low-interest loans according to the measures to promote special economic zones in southern border provinces (Soft Loans) that consists of relevant government agencies. financial institution and the private sector in the area
2. Ask the government to consider extending the period for repayment of all debts from within 2025 to within 31 December 2027, during which financial institutions and entrepreneurs should jointly discuss. to plan debt repayment and negotiate to adjust the interest rate according to the agreement agreed upon by both sides.
However, the Thai Chamber of Commerce believes that the proposal will help replenish capital and expand opportunities for local entrepreneurs to continue operating their businesses in an economy that has not yet recovered much. Therefore, cooperation from the government and financial institutions is required to seriously solve the problem. To help entrepreneurs move forward with their businesses. and continuously create employment in the area This will help distribute income and reduce inequality in the three southern border provinces even further.
Mr. Sanan said that from the Cabinet resolution on March 14, 2023 (before the parliament was dissolved), consider reviewing the Cabinet resolution of December 20, 2022
in accordance with the proposal to extend the repayment period of entrepreneurs in the low-interest loan project according to Measures to promote special economic zones in southern border provinces (Soft Loans) and additional criteria have been established as follows:
1. Project participants with a loan amount of more than 50 million baht must be reduced to no more than 50 million baht by 31 December 2023.
2. Project participants with a loan amount of more than 20 million baht must be reduced to no more than 20 million baht by December 31, 2024.
3. All project participants repay all loans within 30 June 2025, etc.
Source: Thai News Agency