The Cabinet approved a reduction in the contribution rate to the state-owned bank fund to 0.0625% per year, aiming to lower costs and expedite assistance to debtors.

The Cabinet approved a reduction in the contribution rate to the loan fund for four specialized financial institutions: Bank for Agriculture and Agricultural Cooperatives (BAAC), Government Savings Bank (GSB), Government Housing Bank (GHB), and Islamic Bank of Thailand (IBT). The rate will be lowered from 0.25% to 0.0625% per year, effective January 1st to December 31st, 2026. The aim is to reduce the costs for state-owned banks in providing assistance and restructuring debt for retail borrowers.

7 Jul 2569 Ms. Lalida Periswiwatana, Deputy Government Spokesperson It has been revealed that the Cabinet has approved the draft announcement of the Ministry of Finance regarding the determination of the contribution rate to the Specialized Financial Institutions Development Fund, B.E. ..., in order to reduce the contribution rate to the fund for four specialized financial institutions: the Bank for Agriculture and Agricultural Cooperatives (BAAC), the Government Savings Bank, the Government Housing Bank (GHB), and the Islamic Bank of Thailand, for the contribution period in 2026.

The draft announcement reduces the remittance rate from the original 0.25% per year to 0.0625% per year of the total amount received from the public, effective from January 1 to December 31, 2026. The remittance will be divided into two installments of 0.03125% each, aiming to reduce the operating costs of specialized financial institutions and enable them to provide tangible assistance to borrowers.

Ms. Lalida stated that this measure aligns with the volatile situation facing the Thai economy, stemming from global trade policies, geopolitics, natural disasters, and the situation in the Middle East. Meanwhile, a large number of borrowers of specialized financial institutions are individual borrowers, vulnerable groups, grassroots communities, and small business owners, who face liquidity risks and challenges in their ability to repay debts.

The government expects specialized financial institutions to use the reduced costs to support measures to assist debtors, restructure debt, and provide new loans to promising small and medium-sized enterprises (SMEs) in order to inject liquidity into the economic system. This will be done while close monitoring and evaluation are carried out to ensure that the assistance reaches the public effectively, does not affect financial discipline, and does not create an incentive for unnecessary debt default.

"The government is moving forward with the use of specialized financial institutions as a tool to support grassroots citizens, reduce their financial burden, help debtors stay afloat and recover, while also supporting new loans for entrepreneurs with potential, so that the economy can continue to move forward steadily and fairly."

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