More trees being offered by entrepreneurs as collateral for loans
More people are offering large trees as collateral for loans, as encouraged by a 2018 goverment regulation, Mallika Boonmeetrakul Mahasuk, adviser to the Minister of Commerce, said.
The Business Security Act BE 2558 (2015) was passed to allow easier raising of funds by entrepreneurs by pledging trees.
The ministry had issued a ministerial regulation declaring large trees as assets that can be used as collateral, announced in the Government Gazette on November 5, 2018.
All types of large trees can be used as collateral for loans. It is up to the parties to agree on the collateral.
The Department of Business Development has registered 125,911 large trees since the launch of the project as collateral, amounting to THB134.829 million. Most of the trees slare rubber, teak, tamarind, wild olive, neem, ebony, etc.
Since the outbreak of the coronavirus, 32,133 trees were registered as collateral for THB4.559 million.