Debt ridden Thai teachers who owe the Government Savings Bank (GSB), credit unions and private lenders a massive 1.2 trillion baht (US$33 billion) or about half Thailand’s 2.5 trillion (US$69 billion) baht budget will get a reprieve. Read more at Matichon Weekly…
The news on the sorry state of Thai teacher’s financial affair has been carried by various local newspapers.
A move is afoot to extend assistance to debt ridden teachers by temporarily halting interest payment.
Some 50,000 teachers with a combined debt of 72 billion baht (US$2 billion) have so far joined the program.
Despite the relief measures, the Education Minister Kamjorn Tatiyakavee said teachers would need to ultimately find ways to settle their financial obligations, the Weekly reported.
A Thai PBS story as far back as July this year reported that the teachers with debt arecategorised into four groups.
The first group are teachers sued by banks or properties seized by courts will be extended with an interest payment break up to 3 years, but who must repay the overdue interest and principal when the period expires, Thai PBS said.
It is reported that 500,000 teachers have outstanding debts with the GSB, in which more than 1,000 are classified as critical cases.
The second group are teachers who have defaulted on loans for 12 consecutive months, their interest payments will be slashed by half for two years but must repay the principal and the remaining interest.
The third group are those who have defaulted on loans no longer than 12 months, which the GSB will assist in debt restructuring.
The final group are regular loan applicants who given a leniency period in principal repayment for 2 years but are required to pay monthly interest payments, Thai PBS wrote.
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