Bangkok: The government is accelerating efforts to address informal debt issues, with the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives (BAAC) helping more than 53,000 debtors through specialized financial institutions, issuing over 47 billion baht in pico finance loans.
According to Thai News Agency, Ms. Sasikarn Wattanachan, Deputy Government Spokesperson, revealed the progress of the Ministry of Finance’s financial assistance initiatives aimed at solving the informal debt problem. This is being executed in collaboration with specialized financial institutions, including the Government Savings Bank and the BAAC. The approach includes various loan measures such as the People’s Bank Loan Project, loans to pay off informal debts, revolving fund loans to assist poor farmers, measures to support informal debtors who have registered for debt resolution, and loans aimed at job and career creation.
From December 1, 2023, to February 13, 2025, a total of 53,521 individuals have received financial assistance, resulting in an approval of 1,898.90 million baht. Provincial-level retail loans under supervision, known as Pico Finance Loans, have been instrumental in increasing access to fair interest rate funds, protecting borrowers from predatory informal creditors. As of January 2025, 1,149 juristic entities have been licensed to operate pico finance loans across 75 provinces. By the end of December 2024, a total of 4,907,439 pico finance loans had been approved, totaling 47,716.97 million baht. For those interested in starting a pico finance loan business, detailed application information is available at www.1359.go.th, or inquiries can be made via hotline 1359.
Ms. Sasikarn emphasized, ‘The government is moving forward to solve the debt problem for all groups, including the agricultural, business, and public sectors. The debt problem has been a chronic issue in Thai society. The government’s resolution strategy includes clear guidelines and the integration of efforts by all relevant agencies to ensure sustainable debt solutions and prevent recurrence.’