How has the asset capitalisation scheme worked during the past four years?

Between January and September last year, more than 336,000 working-class people and farmers received loans under the scheme. The loans cost about Bt73 billion. Moreover, we expedited the process of the registration of land rights, contracts and various types of permits as assets, as well as verification of authenticity of such documents, for 3 million people.

Are more people interested in the scheme?

The number of loan applicants under the project increased during the past two years. But since September everything has come to a halt because of uncertainty about the scheme continuing.

What's the principle of the Assets Capitalisation Scheme?

Firstly, it gives value to the assets that are generally unwanted by financial institutions - such as land rental rights granted by the Treasury Department, stall rental rights issued by the Bangkok Metropolitan Administration, machinery and intellectual property rights.

Our duty is to make banks accept the assets. Unlike mortgages, the loan applicants under the scheme have to propose projects they will spend the money on.

If the projects are approved by financial institutions, they then get the money.

Moreover, we provide support and help when they face problems. We have a "clearing house" system to compound debts in case their business projects don't go well.

Are you satisfied with the scheme's achievement?

In quantity, we are quite satisfied. According to the financial institutions joining the scheme, NPLs and defaults created from debtors under the project are less than one per cent. This is thanks to the clearing-house system. As for quality, we have to wait for an outside evaluation to tell us whether the people under the scheme have improved their lives. Research into quality evaluation is being conducted by a university and will be finished about March.

Does the scheme tempt people to spend beyond their means?

In my view, the Assets Capitalisation Scheme fits in well with sufficiency economy because each person is granted a moderate loan to run their business projects while the lenders have already decided they have potential.

Will the ahead-of-schedule abolition of the Assets Capitalisation Bureau affect the scheme?

The government might seek other mechanisms to run the scheme, to give confidence to the lenders plus help the debtors under the scheme. However, the scheme won't really work without serious support from the government.

Do you think the Assets Capitalisation Bureau is still necessary?

I won't answer that question, but leave it to people, banks and related organisations instead. If there is another mechanism to proceed with the scheme, the bureau might not be necessary anymore.