BAAC is studying the establishment of a joint venture (AMC) to address chronic debt among farmers aged 70 and over, totaling over 1 billion baht.

The Bank for Agriculture and Agricultural Cooperatives (BAAC) is accelerating its study of solutions to chronic debt among senior farmers aged 70 and over, with total debt exceeding 1 billion baht. The bank suggests a debt haircut or a joint venture (JV) with an AMC, with a clear outcome expected in 2568.

Aug 25, 2568 Mr. Chatchai Sirilai ManagerBank for Agriculture and Agricultural Cooperatives (BAAC) Revealed that from the fact that Mr. Chulaphan Amornvivat, Deputy Minister of Finance, Chairman of the Board of Directors of the Bank for Agriculture and Agricultural Cooperatives (BAAC). The policy has been given to solve the persistent debt problem of the elderly farmer customer group.

The BAAC is currently exploring solutions to this problem. One approach under consideration is the establishment of a joint venture asset management company (JV AMC). The asset management company the BAAC will partner with must have debt resolution objectives that align with BAAC's approach. In addition to the JV AMC, the BAAC is also exploring the creation of its own internal AMC, a separate but more specialized debt management process.

BAAC will begin with senior farmers aged 70 and above, potentially setting a debt limit of less than 300,000 baht or using group guarantees. An assessment found that eligible agricultural customers have a combined debt of approximately 10,000 billion baht, with clarity expected by 2568.

"We need to consider what form we can take within the legal framework to cut bad debt without causing damage to the state. For example, we could deal with elderly farmers who are unable to repay, have unsecured debt, and have undergone numerous debt relief measures but have been unable to recover. For this group, the BAAC has already fully reserved reserves and can afford a haircut. However, such a haircut must be proposed to the Ministry of Finance or the Cabinet, allowing the BAAC to implement this approach without joint ventures, as joint ventures are time-consuming."

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