Thailand: New govt stimulus targets grassroots, homebuyers

  • The cabinet approved more economic stimulus measures, including money for village funds, THB50bn in loans for local people’s organisations and a THB50,000 subsidy on a home purchase down payment.
  • Finance Minister Uttama Savanayana said his ministry proposed the measures for the approval to stimulate domestic demand to maintain growth in 4Q19 and generate momentum for economic expansion in 2020.
  • If approved, 71,742 funds of villages and urban communities will each receive up to THB200,000 for community-based infrastructure such as barns, mills, fertiliser plants, reservoirs and machinery to process farm produce. About THB14.35bn was allocated for the purpose.
  • Members of village and urban community funds could also apply for a one-year debt moratorium.
  • In addition, state-run Bank for Agriculture and Agricultural Cooperatives will lend THB50bn for village and urban community fund management, other community-based financial institutions, farmers’ organisations, community enterprises and agribusiness operators to finance their operations. The loans will carry an annual interest rate of 0.01% for the first three years.
  • Rice growers will be able to apply for a subsidy for harvest and paddy improvement at THB500 per rai. The subsidy is capped at THB10,000 per family.
  • For homebuyers, the government will give a THB50,000 rebate on down payments for residences.
  • These measures should benefit the general public, small farmers, small and medium-sized enterprises, and the property sector, Mr Uttama said.

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