Bangkok: Village fund leaders have expressed strong support for Minister Suksomruay Wantaniyakul's efforts to accelerate the capital increase and interest rate reduction project aimed at alleviating informal debt.
According to Thai News Agency, Minister Suksomruay Wantaniyakul, attached to the Prime Minister's Office, announced that the government, led by Prime Minister Anutin Charnvirakul, is advancing the "Thai Helps Thai: Capital Increase, Half-Interest Loan" project. This initiative, with a budget exceeding 4,452 million baht, seeks to halve the interest rates on village fund loans, thus granting over 12 million members nationwide easier access to capital. Suksomruay has directed the National Village and Urban Community Fund Office (NVUCO) to ensure rapid involvement of village funds nationwide in this project to swiftly reduce members' interest burdens. She highlighted the importance of providing liquidity to grassroots citizens during challenging economic conditions, noting that village funds serve as essential revolving mechanisms to tackle informal debt issues.
The operational strategy for the 2027 fiscal year includes prioritizing the revitalization of village funds that have not received additional capital since 2012, using approximately 3.4 billion baht from unspent funds. Staff will be assigned to assist throughout the process, from registering legal entities to electing new board members. Suksomruay emphasized the importance of helping village funds regain their status and fostering financial discipline among members to help them escape high-cost informal debt.
Ms. Saiyut Yotklang, chairperson of the Village Fund Network in Khlong Sam Wa District, supports the government's initiative, highlighting that village funds have been instrumental in helping members break free from informal debt. In Community Group 3, the fund began with savings of 100 baht per household from 50 members before receiving support from the Village and Urban Community Fund. Loans are provided at a fixed interest rate of 6% per annum, significantly lower than those of informal lenders. The fund now has approximately 2 million baht in Account 1 and 4 million baht in Account 2, with members freed from informal debt through a system of clear collateral and repayment discipline.
In conclusion, the village fund initiative offers a sustainable alternative to informal lending, providing community members with much-needed financial support while fostering economic growth and stability.