Reports from a debt relief program designed for farmers have indicated that a significant number of eligible participants have shown interest, with projections to increase by the end of October.
The President of the Bank for Agriculture and Agricultural Cooperatives (BAAC), Chatchai Sirilai, announced that around 700,000 farmers have expressed interest in joining the debt relief program, out of the 2 million who are eligible. It is estimated that by the end of October, around 1 million farmers, which is about half of those eligible, will have joined. The bank provides three more months for farmers to review their eligibility through the BAAC Mobile app.
Farmers eligible for the program currently have Non-Performing Loans (NPL) totaling 36 billion baht. BAAC plans to first restructure these debts before implementing the relief measures. Once farmers start repaying, the entire principal will be cut, reducing the debt and expediting its normalization.
The bank is also focused on developing farmers’ potential under the principle of “Market Leads, Innovation Supplements, Increase Income.” Collaborating with government sectors and external organizations, BAAC conducts training alongside the debt relief measures to boost farmers’ opportunities to invest, switch, or expand their professions. The training aims to rejuvenate farmers, making them more competitive, self-sufficient, and better able to repay their debts, which contributes to long-term financial discipline and improved quality of life.
Lastly, Chatchai indicated that BAAC is considering adjusting farmers’ repayment schedules to align with their production cycles. This aims to benefit both the farmers and the bank in reducing NPLs. He added that transferring these NPLs to Asset Management Companies (AMC) is not a viable option, as it could lead to forced asset seizures. BAAC is not interested in seizing farmers’ agricultural lands and provides opportunities for continual debt restructuring. (NNT)
