GHB told to help low-income earners buy homes amid commercial bank

The state bank could offer debt extensions and reduce income requirements to allow for easier access to financing.

One measure will be to divide debtors into two types – low-income earners and people who are unable to secure a home loan from commercial banks that are tightening up on credit analysis amid the economic slowdown.

"The GHB should be able to finalise this week what kind of measures will be introduced, and then the package will be put up for the consideration of the Cabinet," he said yesterday at an economic seminar arranged by Land and Houses Bank to mark its 10th anniversary.

The proposal from realtors to lower transfer and mortgage fees to 0.01 per cent is being studied by the government, but no conclusion has been reached.

Some light at the end of tunnel for the economy is coming into view since the collection of value-added taxes, a gauge of domestic consumption, increased by 10 per cent year on year in September. This shows that the economy is recovering at a faster pace, Apisak claimed.

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In the meantime, the measures to support small and medium-sized enterprises by guaranteeing their loans from commercial banks and to inject Bt5 million of fresh capital into 7,000 tambon will help revitalise the grass-roots economy, he said.

However, private investment is still falling, so the government will have to find steps to facilitate new projects in the private sector.

"These investment stimulus measures should be able to create more confidence in the private sector, which is facing a psychological problem at the moment," he said.

Investment in infrastructure mega-projects will be pushed through by next year and the expected recovery of the global economy should be able to support Thailand’s economic recovery next year, Apisak said.

The Thai Credit Guarantee Corporation (TCG) yesterday unveiled a Bt100-billion scheme to provide more guarantees to SMEs.

Wichet Warakul, a member of the TCG’s corporate governance and social responsibility committee, said banks had begun to seek guarantees from the TCG under the scheme approved by the Cabinet on September 8.

The TCG’s 19 banking partners have signed an agreement to join the programme, which expires in June of next year.

The TCG will guarantee SME loans for the first four years and waive its premium in the first year. SMEs will then pay a premium of 0.5 per cent of the guarantee limit in the second year, 1 per cent in the third year and 1.5 per cent in the final year.