The board of the Bank for Farming and Agricultural Cooperatives (BAAC) has actually concurredconsented to reduce the debt concern of farmers owing a combined 116 billion baht through debt forgiveness and payment rescheduling.
The 818,000 farmers who will join the programme should be encumbered debt owed to the state-owned farm bank of up to 500,000 baht each, said presidentLuck Wajananawat.
The plan runs through March 31, 2016.
Thegovernment recently concurred in concept to instruct the state-owned bank to alleviate the financial obligation burden of farmers suffering from financial doldrums, drought and falling crop rates.
Under the scheme, the bank will composecross out all 4 billion baht in impressive debt owed by 28,000 farmers who are handicapped, chronically ill or deceased.
The BAAC will certainly likewise reorganize 48 billion baht in debt owed by 340,000 farmers who have proved they are drowning in financial obligation but able to work.
The bank will certainly reschedule the debt repayment duration to up to One Decade with a three-year grace duration and charge debtors the minimum retail rate, now at 7 %.
Debt relief will also be extended to 450,000 farmers impacted by the governments request to avoid growing the 2nd rice crop during the dry season and those struck by the rubber price depression.
These farmers shoulder a cumulative 64-billion-baht debt owed to the bank.
Moreover, the BAAC will provide 35 billion baht in loans to financially pressed rice and rubber farmers who have actually changed to other agricultural items or changed professions.
For other farmers who are ineligible for debt relief but have a good payment performance history, the bank will certainly decrease rate of interest and offer emergency situation loans.