Three state lending agencies will combine their efforts to extend soft loans of at least 10 billion baht to people at grassroots level next year.
Varathep Ratanakorn, a deputy finance minister, said that in the next two weeks the Government Savings Bank (GSB), Bank for Agriculture and Agricultural Co-operatives (BAAC) and Small Industry Finance Corporation (SIFC) would make a joint proposal, including a common fund, to Somkid Jatusripitak, the finance minister.
The proposal would complement the government's effort to stimulate economic growth. The new fund would not require government funds but would tap remaining free cash held by the three institutions.
The institutions now set their own lending targets. The BAAC plans to lend about 10 billion baht to community farm enterprises next year, while the GSB plans to boost lending through the people's bank and the SIFC plans to establish a more aggressive lending target for SMEs.
