The Government Savings Bank (GSB)’s soft loan policy has run out of its 150 billion baht budget after only a month, Finance Minister Uttama Savanayana said after a meeting with specialized financial institutions (SFIs) on Thursday.
The soft loans are part of a government economic relief package that was expected to inject 400 billion baht into the economy.
The soft loan lent money to commercial banks at a rate of 0.01 per cent with the banks then lending out to customers at 2 per cent per year for two years with a cap of 20 million baht per customer.
Chatchai Payuhanaveechai, GSB president and chief executive said of the 150 billion baht budget, 135 billion baht was lent out to 20 banks and 15 billion baht was extended by the GSB to borrowers at a rate of 2 per cent interest.
According to Uttama, another loan program worth 40 billion baht and set aside for freelance workers and farmers at an interest art of 0.1 per cent has also run out of budget. The budget for this scheme will be increased, pending cabinet approval.
The Bank of Thailand is planning another series of programs including direct lending to SMEs through the Small and Medium Enterprise Development Bank of Thailand. With a budget of 500 billion baht and an interest rate of 0.01 per cent, the BOT program has been approved by the cabinet.
