BANGKOK, Oct 27 (TNA) – Finance Minister Korn Chatikavanij on Monday said that the Ministry of Finance supports the Bank of Thailand (BoT) plan to establish microfinance to address informal debts.

Under the plan, persons with sufficient capital will be permitted to seek a license to provide financial services to local people at the grass-roots level to ensure they have an easier access to sources of funds.

He said details of the plan would be raised for discussion at the meeting of economic ministers. It is expected the plan would be wrapped up and proposed to the cabinet for consideration soon.

Additionally, to serve the increased loan demand under the Thai Khem Keng (strong Thailand) scheme, Mr. Korn said, the ministry policy is to have the state-owned Krung Thai Bank play a key role in lending to entrepreneurs, particularly contractors and operators of supporting business, to ensure they have sufficient liquidity.

KTB has the potential to carry out the goal as it increased its target lending from Bt300 to Bt450 billion this year.

He said the economy shows clear signs of recovery, boosted by increased demand both internally and externally.

However, the recovery had not yet come from expansion of private-sector investment, he said. (TNA)

Source: MCOT English News
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BANGKOK, Oct 27 (TNA) – Finance Minister Korn Chatikavanij on Monday said that the Ministry of Finance supports the Bank of Thailand (BoT) plan to establish microfinance to address informal debts.

Under the plan, persons with sufficient capital will be permitted to seek a license to provide financial services to local people at the grass-roots level to ensure they have an easier access to sources of funds.

He said details of the plan would be raised for discussion at the meeting of economic ministers. It is expected the plan would be wrapped up and proposed to the cabinet for consideration soon.

Additionally, to serve the increased loan demand under the Thai Khem Keng (strong Thailand) scheme, Mr. Korn said, the ministry policy is to have the state-owned Krung Thai Bank play a key role in lending to entrepreneurs, particularly contractors and operators of supporting business, to ensure they have sufficient liquidity.

KTB has the potential to carry out the goal as it increased its target lending from Bt300 to Bt450 billion this year.

He said the economy shows clear signs of recovery, boosted by increased demand both internally and externally.

However, the recovery had not yet come from expansion of private-sector investment, he said. (TNA)

Source: Ministry of Finance
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Common Interest Foundation has been approved for membership into the Banking with the Poor Network. Up to now, the only other Thai representative has been regional office of Plan International.

The Banking with the Poor Network (BWTP Network) is Asia’s microfinance network that works towards building efficient, large-scale sustainable organisations, through co-operation, training and capacity building with the aim of achieving innovative, appropriate and demand-driven financial services for the poor. The Network is an association of a diverse range of microfinance stakeholders committed to improving the quality of life of the poor through promoting and facilitating their access to sustainable financial services. The BWTP Network is an initiative of the Foundation for Development Cooperation and its Secretariat is based in Singapore.

For more information on the network, please visit www.bwtp.org
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Oct 1, 2009
Thailand’s Ministry of Interior has told government agencies and state-owned organisations to provide technical, management and financial support to encourage Islamic microfinance in the country. The proposal by the Ministry has received cabinet support. It will result in knowledge of transactions, accountancy and welfare arrangements according to Shari’ah being passed on to staff in the sector by the agencies and organisations involved. Social welfare and other benefits, in terms of education, social services and the environment, will also be provided for members of Islamic microcredit plans.

According to the Ministry of Interior, the Southern Border Provinces Administrative Centre had appointed a working group to study what form and model of Islamic microcredit would be most appropriate. The population of this region is predominantly Muslim, and the Ministry’s objective is that communities in the area have access to financial institutions which operate in accordance with their own lifestyle and religious beliefs.

The working group’s study demonstrated that most villagers were keen to see the establishment of Shari’ah-compliant microfinance in their communities, although they still lacked understanding of financial mechanisms used in the industry. Once the working group submitted its study, in May 2009, the administrative centre then made its proposal on Shari’ah-compliant microfinance to the government. Muslims are the second largest religious group in Thailand, numbering approximately two million.

Source: New Horizon
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