The state-owned Bank for Agriculture and Agricultural Cooperatives (BAAC) will aim for 100 billion baht in new lending during its next financial year.
The bank will shift lending focus to communities, groups and households and away from individuals as is currently practised, said president Apirom Sukprasert. The BAAC also wants to cooperate with the Industry Ministry on a scheme to create 100,000 smart farmers.
The BAAC’s new loans are estimated to reach 60 billion baht in this financial year, which ends March 31, 2020, down significantly from 95 billion baht the previous year.
The bank’s debt repayment suspension scheme for farmers and drought conditions dented loan demand, Mr Apirom said.
To comply with government policy for the BAAC to support the rural economy, the bank will adjust the loan criteria to serve family-based lending, as opposed to an individual approach.