The Cabinet yesterday approved the rehabilitation of Bt6.3 billion in loans extended to 36,605 farmers, who are members of the Reconstruction and Development Fund (RDF), by the Bank for Agriculture and Agricultural Cooperatives (BAAC), Nattaporn Jatusripitak, spokesperson attached to the deputy prime minister in charge of economic affairs, said after a Cabinet meeting yesterday.
He added that the farmers could suspend all payments until the BAAC has completed the restructuring of their debt.
The process is expected to take three years.
Borrowers, whose loans were treated as non-performing as of December 31, 2017, will have to pay half the principal amount within 15 years with the interest rate set at the minimum retail rate minus 3 per cent.
Once half the principal amount is paid, the BAAC would consider restructuring the balance of the debt, he said.