The plan is an innovative way of tackling loan sharking, which has always been robustly resistant to enforcement. Instead, the idea is to turn loan sharks – or some of them, at least – into registered microlending companies.
FPO Director General Somchai Satjapong revealed that his office had already raised the issue to Deputy Prime Minister and Finance Minister Kittiratt Na Ranong, who supported the scheme.
But, Mr Somchai explained, the plan needs prior approval from the EC. If the response is positive, the FPO can start the project without waiting for the formation of a new government.
He believes that the move would be able to deal with illegal money-lending “to a certain degree”.
Under the scheme, “unlicensed creditors” – the polite name for loan sharks – would be allowed to register as a juristic person and set up a small-time credit company providing loans to the general public.
The FPO Director General said believed that the project would interest loan sharks, adding that commercial banks would be able to join the scheme on the conditions that the companies they set up would not be allowed to accept deposits, and must not offer loans exceeding B100,000 per borrower.
No mention was made of the interest rates that might be charged by the new companies.