Thailands military government will lend farmers and their children a combined 11 billion baht ($345 million) (208.07 million British pound) in an effort to fight off loan sharks as high levels of household debt drag on economic recovery, a state bank said on Tuesday. The plan is part of the juntas measures to revive Southeast Asias second-largest economy, which was hurt by months of political unrest. The army took power on May 22. The central bank and the state planning agency indicated household debt levels this year were as high as 82.3 percent of gross domestic product (GDP), up from 75.5 percent in the first quarter of 2013, Somsak Kangteerawat, senior executive vice president of the Bank of Agriculture and Agricultural Cooperatives (BAAC), told reporters. Therefore, the BAAC has come up with this scheme to tackle household debts, which are not in the main financial system, he said, adding that loan sharks charged interest rates ranging from 36 percent to 60 percent per year.
Posted on: Tue, 26 Aug 2014 08:01:14 +0000
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