BAAC injects Bt220 billion in fresh loans to boost rural economy

The bank had held a press conference to mark its 55th anniversary. 

Aiming to boost agricultural production, BAAC has earmarked Bt170 billion to cover loans for farmers and their children. Part of the funds will be used to support younger people who want to return to their villages and help their parents transform their farms by using new technology, said Surachai, who is also senior executive vice president. 
Loans handed out under the “New Gen Hug” theme will offer a three-month interest break, and from the fourth month, the interest rate will be set at a minimum retail rate (MRR) of 6.5 per cent per annum.
The bank has also set aside Bt50 billion to support community enterprises. Under this scheme, loans will be given out at a very low interest rate of 0.01 per cent annually. BAAC will also offer technical assistance to borrowers and will partner with educational institutions, department stores, modern trade and others to provide knowhow in technology, production and marketing for borrowers, he said. 
In a move to ease the impact of Covid-19, BAAC has also offered borrowers a one-year debt holiday until June 2021. The project, launched on October 22, covers 3.25 million farmers, agricultural cooperatives and communities with debt suspension worth Bt1.45 trillion. 
BAAC has also participated in the central bank’s soft-loan scheme for SMEs. As of October 22, it had lent Bt5.1 billion to 5,974 small businesses. 
The bank also handed out emergency loans of no more than Bt10,000 per individual at a monthly rate of 0.1 per cent with payment over two and half years. As of October 31, the bank had granted emergency loans to 850,000 borrowers worth Bt8.5 billion. 
BAAC has also participated in the government’s cash handout scheme designed to support self-employed persons who were affected by the pandemic. Each person was given Bt5,000 per month from May to July. The bank handed out a combined Bt43 billion in cash to 2.7 million people, as well as Bt13.3 billion to 7.56 million farmers over the three months. 
BAAC, armed with a workforce of 25,000, has provided financial services to help farmers and small businesses survive the impact of the Covid-19 crisis, he said.