Three agencies out to help troubled workers

 Ennoo Suesuwan, executive vice president of the bank, said that the programme is initiated due to the economic slowdown, which could force business operators to shed labour. While some workers will have to return to their provincial hometown, fresh graduates would also be affected.

 The programme targets to help 250,000 people: 100,000 workers who return home and 150,000 fresh graduates. While about Bt4 billion is earmarked for the first group, the remaining Bt6 billion is for the latter. The interest rates for the two groups are 6 per cent and 7.25 per cent, respectively. Each can borrow no more than Bt50,000.

 "The rates are different, as the money to the laid-off workers is from the Social Security Office which costs lower. Moreover, eligible workers are screened by the office and henceforth reduces the lending risks to some extent," Ennoo said.

 The loans could be extended in March, he added.

 Labour Minister Paitoon Kaewthong said the Social Security Office's financial support is part of the ministry's strategies to deal with the rising unemployment. Earlier, the office allocated Bt6 billion to commercial banks for relending to troubled business operators.

 He hoped that this would alleviate the unemployment, as in the last quarter of 2008 about 600 plants laid off about 50,000 workers. Meanwhile, additional 200,000 could be laid off in the first quarter.

 "Spending part of the office's Bt500 billion fund would not affect its future finances. Moreover, this is not grant and the office stands to gain 1 percentage point as interest, through the relending. Moreover, the office would gradually deposit Bt300 million each time to participating banks," Paitoon said, adding that if necessary the office's total supports could exceed Bt10 billion.

 The Office of Higher Education Commission expected over 300,000 students to graduate thsi year, and 70 per cent could have difficulties to find job as they are studying in the fields with low demand.