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Cabinet approves B50bn in loans for tourism sector

Cabinet approves B50bn in loans for tourism sector

BANGKOK: The Cabinet has approved a B50-billion low-interest loan programme to assist informal workers and small and medium-sized enterprises (SMEs) related to the tourism sector.

Tuesday 16 February 2021, 09:24AM


Business is unusually quiet at Walking Street in Pattaya amid the second COVID-19 outbreak. Photo: Nutthawat Wichieanbut / Bangkok Post

Business is unusually quiet at Walking Street in Pattaya amid the second COVID-19 outbreak. Photo: Nutthawat Wichieanbut / Bangkok Post

Since the new wave of the COVID-19 outbreak resulted in certain areas being placed under stringent control, subsequently affecting people’s livelihood and businesses, especially those operating in the tourism sector, the Cabinet has approved the roll out of additional measures to alleviate debt shouldered by the people and SMEs, said Finance Minister Arkhom Termpittayapaisith.

The Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives have been approved total loans worth B40bn, with B20bn disbursed for each bank, to provide support for informal workers affected by the outbreak, reports the Bangkok Post.

A flat interest rate of 0.1% per month is applied to this loan programme, while the grace period for repaying the principal and interest is extended to 12 months from six months, the normal repayment period stipulated by both state-owned financial institutions.

The loan period covers three years and borrowers can seek to obtain loans until June 30.

Another loan scheme with a total credit line of B10bn has been approved for the GSB. The programme is designed to provide low-interest loans for tourism-related businesses and those designated as supply chains of the tourism sector.

MACNELS SHIPPING PHUKET

The qualifications for receiving this loan are having vacant lands or land and buildings with title deeds as collateral and borrowers do not have to check their credit with the National Credit Bureau.

The credit line per individual does not exceed 70% of the government’s land appraisal value, with the maximum credit line capped at B50 million.

Loan terms comprise a three-year loan period with step-up interest rates at 0.1%, 0.99% and 5.99% per year for the first, second and third years, respectively. Borrowers can seek to obtain these loans until June 30.

The Finance Ministry expects the loans will help ease the financial burden shouldered by the people and solve the liquidity crunch faced by SMEs in order for firms to retain employees, said Mr Arkhom.

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Kurt | 17 February 2021 - 11:19:48

There we are, giving loans. For what? To stay alive? Not for business. Many Thai, given loans, will not be able to pay back. Besides, it is in their culture that on money received is no urge to pay back. Ever borrowed money to a Thai? You never see it back. It's seen as 'given'. Hope I not insult the good doing ones. Apologize in advance.

charles | 17 February 2021 - 09:44:26

OK so to get a loan they also have to be land owners, it seems to me that a lot of the businesses shut down in Phuket were rental properties so how exactly does this help those businesses then 

ThorFinger | 16 February 2021 - 22:37:50

Let's loan people money who have no way of being able to make enough money to pay it back. 

 

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