Bangkok: 'Suksomruay' is leading efforts to upgrade village funds into community financial institutions, targeting the eradication of informal debt problems and revitalizing "red" funds to restore financial discipline. Ms. Sukhsomruay Wantaniyakul, Minister attached to the Prime Minister's Office, has outlined the government's strategy through the "Thai Helps Thai: Capital Increase, Half Interest Rate" project. This initiative, headed by Prime Minister Anutin Charnvirakul, integrates government efforts with the Village and Urban Community Fund Office (VUCFO) to address debt issues and expand financial opportunities nationwide.
According to Thai News Agency, the short-term goal is to decrease expenses and resolve debt issues to urgently enhance citizens' quality of life. A budget of 4,452 million baht has been allocated to over 79,610 village and urban community funds, ensuring access to fair and low-cost formal financing. The Prime Minister emphasized that the budget should be converted into capital that supports livelihoods, boosts family income, and circulates funds within communities. Additional capital will be provided on a tiered basis, ranging from 30,000 to 150,000 baht, to offset a 50% interest rate reduction for members. This reduction allows members to save money, increasing funds circulation within communities. Consequently, village and urban community funds will become vital sources of low-interest financing for members, eventually transforming into community financial institutions.
To enhance village and urban community funds' quality, VUCFO has classified them into green, yellow, and red categories. The focus is on revitalizing "red" funds with management issues, restoring discipline and operational efficiency. This includes overseeing the outstanding second million baht allocation, totaling approximately 3.4 billion baht, to ensure equal opportunities for all villages. Strict measures will be taken against corruption or intentional damage.
Mr. Chankit Trairattananon, Director of the National Village and Urban Community Fund Office, stated that the long-term goal is to upgrade village funds into community financial institutions to effectively and sustainably address informal debt issues. Village funds will collaborate with state-owned banks like the Government Savings Bank, the Bank for Agriculture and Agricultural Cooperatives (BAAC), and Krung Thai Bank, serving as mentors to support transactions and finance. This collaboration aims to create an accessible banking system for all areas, transforming village funds into a robust financial mechanism and a crucial foundation for Thailand's economic future.