Bangkok: The government has reported significant progress in its efforts to alleviate informal debt, aiding more than 77,000 debtors with a budget of 2.4 billion baht over the past six months. This initiative is part of a collaborative effort between the Ministry of Finance and specialized financial institutions, including the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives.
According to Thai News Agency, Ms. Sasikarn Wattanachan, Deputy Government Spokesperson, disclosed that from December 1, 2023, to May 22, 2025, the government approved financial assistance for 77,929 individuals burdened by informal debts. This resulted in a total approval amount of 2,400.98 million baht, marking an increase from the operations on May 7, 2025, which saw 2,406 additional cases and a rise in approval amount of 53.02 million baht.
The Ministry of Finance's initiative aims to provide retail customers with access to formal financial sources at fair interest rates, protecting them from informal creditors who charge exorbitant rates. The initiative also offers a pathway for informal creditors to provide formal credit services legally.
Data from April 2015 reveals that 1,155 legal entities, including limited companies and limited partnerships, have been licensed to operate pico finance businesses across 75 provinces. By the end of March 2015, a total of 5,081,240 pico finance loans had been approved for retail customers, amounting to 50,066.09 million baht. Of these, 393,010 accounts had outstanding loans totaling 7,429.15 million baht.
Ms. Sasikarn emphasized the government's commitment to continuing policies that address informal debt while promoting access to formal financial sources. This effort aims to reduce social inequality and provide debtors with more opportunities to sustainably support themselves and their families.