The Farmers Rehabilitation and Development Fund has received a budget worth 2.3 billion baht for 2020 with 518 million baht being set aside for development projects.
Government deputy spokesperson, Ratchada Thanadirek, told reporters that a draft of regulations for the management of the fund had been reached after a meeting between the fund’s committee members and Commerce Minister Jurin Laksanavisit.
Under new regulations, the fund will no longer buy property that was discharged from the mortgage, if the property was sold before being registered with the rehabilitation fund. Now, the fund can only purchase property that is up for auction under the Legal Execution Department.
The new regulations mean that the fund can now purchase property that has been used as collateral by farmers and later sold by debtors.
Jurin also instructed the office to study for the possibility of a debt restructuring plan for farmers which would allow for the fund to payback farmers’ debts by at least 50 per cent of the principle, while the remaining 50 per cent and interest will occur to creditor institution, if any.
The creditors will receive compensation from the government while the farmer will have to comply with the fund’s rehabilitation plan and then gradually pay back the money that the fund has initially put up.
This measure will be introduced by the cabinet next month to help more than 46,000 farmers with a combined debt of over 15 billion baht.
The Farmers Rehabilitation and Development Fund has received a budget worth 2.3 billion baht for 2020 with 518 million baht being set aside for development projects and the remaining going towards debt relief.
Government deputy spokesperson, Ratchada Thanadirek, told reporters that a draft of regulations for the management of the fund had been reached after a meeting between the fund’s committee members and Commerce Minister Jurin Laksanavisit.
Under new regulations, the fund will no longer buy property that was discharged from the mortgage, if the property was sold before being registered with the rehabilitation fund. Now, the fund can only purchase property that is up for auction under the Legal Execution Department.
The new regulations mean that the fund can now purchase property that has been used as collateral by farmers and later sold by debtors.
Jurin also instructed the office to study for the possibility of a debt restructuring plan for farmers which would allow for the fund to payback farmers’ debts by at least 50 per cent of the principle, while the remaining 50 per cent and interest will occur to creditor institution, if any.
The creditors will receive compensation from the government while the farmer will have to comply with the fund’s rehabilitation plan and then gradually pay back the money that the fund has initially put up.
This measure will be introduced by the cabinet next month to help more than 46,000 farmers with a combined debt of over 15 billion baht.