Published August 6th, 2010
Non-performing loans in the agriculture sector could double to 200 billion baht with one million farmers hurt if proper debt restructuring does not take place, says Kanok Wongtranghan, an adviser to Prime Minister Abhisit Vejjajiva.
Currently, 510,000 farmers with total debts of 100 billion baht need to enter the debt restructuring process sponsored by the government, according to the plan approved by the cabinet on April 7.
Four banks – Krung Thai Bank, the Government Savings Bank, the Government Housing Bank and the Bank for Agriculture and Agricultural Co-operatives – have joined the programme.
About 70% of debts to be restructured are lent by BAAC and the rest by the other three banks.