BAAC to issue 5 billion baht in new loans to help farmers afflicted by drought

BANGKOK, 14 March 2013 (NNT) – The Bank for Agriculture and Agricultural Cooperatives (BAAC) prepares to extend loan repayment period and provide new loans to farmers hard-hit by the drought disaster.

Chaiwat Pokpong, assistance managing director at BAAC, indicated that as many as 100,000 households that were customers of the bank have been afflicted by the drought. He said the bank will extend the loan repayment period by one year for farmers who were affected to the extent that their income is cut by more than half. New loans of up to 100,000 baht will also be granted to each farmer. With these loans, the afflicted farmers can invest in growing crops that needed less water than the crops that had been damaged, or make improvements to water reservoirs on their land.

The bank will also reduce requirements needed for loan issuance for fruit orchard farmers who needed urgent loans to combat the shortage of water.

The bank expects it would need 5 billion baht to issue the loans for these purposes. The initiative needs to receive endorsement from the BAAC board. Mr. Chaiwat believes board approval will be received.

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