Ministry of Finance, The Ministry of Finance pulls government banks to reduce first, ease the burden on the people, prepare 5 projects to present to the Cabinet to issue low-interest loans to help 3 SME groups. emergency loan Focusing on welfare card groups of 10 million people, the Ministry of Finance issues support. BoT cuts interest rates to reduce new investment costs Mr. Pornchai Teerawet, Director of the Fiscal Policy Office As a spokesman for the Ministry of Finance, it was revealed that the Thai economy is still slowing down. It is expected that it will expand by 2.8 percent in 2024, while the policy interest rate of the Ministry of Defence is 2.5 percent per year. General inflation is low, negative -0.8 percent in February 2024 and has continued to slow down. The fifth month indicates weak domestic purchasing power. When interest rates continue to rise Affecting all groups of people Resulting in an increased monthly installment burden. The Treasury is therefore preparing to propose The Cabinet wil l release low-interest products during April. Supports the Prime Minister's announcement of Thailand Vision "IGNITE THAILAND" by pulling in state banks. Issuing low interest loans Help 3 groups of SMEs to make investments into tourism centers. Medical and health center Regional food hub In addition, the Government Savings Bank issues emergency loans to welfare card holders, with a loan of 50,000 baht per person. while Exim Bank Initial loan for exports, credit limit of 5 million baht, interest rate 5.75 percent in the first year. Capital top-up loan, credit limit of 10 million baht, interest rate of 4.75 percent in the first year, when combined with credit limit. Both old measures and new measures are prepared to present to the Cabinet to help the people up to 400 billion baht. integration of state banks To help the people By reducing or freezing interest rates along with providing low-interest loans to encourage people to apply for low-interest loans In the past, all government banks have helped to freeze i nterest rates until the end of 2022 and delay interest rate increases in 2023, even though the policy interest rate has been raised several times in the past two years. Since January 2024, the Government Savings Bank has reduced interest rates. Prime retail customers (MRR) decreased by 0.15 percent per year from 6.995 percent to 6.845 percent. The Government Housing Bank (GH Bank) has the GH Bank Suksabai House Project for existing debtors of GH Bank can apply to change the interest rate to a lower level. SME Bank The SME Refinance Loan Project has been launched to reduce costs for debtors. In addition, all state banks have helped restructure debt and reduce interest rates for retail debtors and SMEs debtors, including low-interest loan measures for all citizens and entrepreneurs. The group, through the State Bank, will take the old measures and dust them off, adjust the conditions and extend the original project time. Organizing additional promotions To help debtors To send a signal to various financial ins titutions to turn to helping debtors more. including interest reduction Debt suspension helps improve debt structure. To help reduce the burden on the people Adding more liquidity to the economy, stimulating 'The Treasury hopes that the MPC meeting on April 10 will consider more comprehensive factors because the Fed and the Bank of England are maintaining interest rates because inflation is still high. Want inflation to return to target. In Thailand, inflation is negative. and is at a low level Therefore there is enough margin to reduce interest. While the market predicts that The MPC will cut interest rates twice this year when the private sector sees signs. will be able to decide on new investment plans. The Ministry of Finance views that reducing interest rates will not help increase household debt. Because various banks have strict lending requirements. Not a decrease in interest Household debt will skyrocket immediately. If the policy interest rate is reduced by 0.25 percent, it will increase consumptio n by 0.15 percent and increase investment by 0.16 percent. It is considered that reducing the policy interest rate will greatly help revive the economy,' said a spokesman for the Ministry of Finance. Source: Thai News Agency