Bangkok, “Chaiwat” sees the government’s solution to the government’s informal debt problem as still being in the same old way – lacking many important details. Points out that the law on managing informal creditors must be seriously enforced. Increase opportunities to access credit in the system

On November 28, 2023, Chaiwat Satawonwijit, MP for the Kao Klai Party, commented on the government’s press conference on the agenda for resolving the informal debt problem, stating that it was a pleasure that Prime Minister Settha Thavisin gave Interest in solving debt problems Especially informal debt, which is a chronic problem in Thai society.

However, the methods that the government will use to solve the problem of informal debt this time It has been practiced many times in many governments. But the problem has not been resolved. In addition, today’s press conference has 4 components that still lack details and clarity on how they are different from past measures:

1) Superintendent and Sheriff as mediator What will be the role? And who will the financial planning assistant be?

2) Debt restructuring To convert the portion of informal debt that can be converted to be in debt in the system Where will the budget be used? What is the limit?

3) Creating a credit system that allows debtors outside the system to access credit in the system again to eliminate debt outside the system. What are the details?

4) Improving various disadvantages of the existing provincial-level microfinance (pico finance) and microfinance (nano finance) businesses in order to create incentives for creditors outside the system to enter the system. What are the details?

In addition, although the Royal Thai Police has set up a center to prevent and suppress crimes related to informal debt (hotline 1599) since June 8, 2020, the problem of informal debt has not decreased. In this part, the Prime Minister must be asked. Let’s look in detail at why the solution is ineffective. This round of government measures has increased the role of police station superintendents and district chiefs to work at the local level as well. This needs to be followed up to see if the original problem can be solved or not.

Chaiwat concluded that As a proactive opposition The Progressive Party has suggestions for the government regarding solving the problem of informal debt. Which consists of 5 buttons that must be installed correctly from the first button:

1) Police officers and administrative officials must perform their duties honestly and not accept tributes related to problems that need reform. Whether it is about the compensation being so low that it causes the use of power to exploit Unfair appointment and transfer Interference from influential people and politicians Values and systems that have been practiced in the past and the lack of serious inspection and punishment measures.

2) Serious prosecution of illegal creditors outside the system. through enforcement 2017 Act prohibiting charging interest exceeding the rate, which has a penalty of imprisonment not exceeding 2 years or a fine not exceeding 2 hundred thousand baht, or both. 3) Reduce debt burden by mediating debt reconciliation between creditors

and debtor To be subject to the interest conditions specified by law.

4) Increase skills, increase income to increase debt repayment potential of debtors outside the system.

5) Increasing channels and opportunities to access credit in the system. 312 .

Source: Thai News Agency