The government has a plan to relieve 80,000 farmers of much of their debt burden - requiring them to pay just half of any remaining principal back to their creditors. And interest will be waived.
"We have already talked to the creditors and they all agree with the plan," Deputy Prime Minister Sanan Kachornprasart said yesterday.
Sanan said the creditors are state-run banks: the Krung Thai Bank, Government Savings Bank, Bank for Agriculture and Agricultural Cooperatives, and the Government Housing Bank.
Sanan said these banks should make some sacrifice, given that they had already received large amounts of interest from poor farmers.
The plan will cover 80,000 of 510,000 farmers in the Farmer's Reconstruction and Development Fund programme.
Sanan said the farmers eligible for this plan must pay half of the remaining principal back to the banks within 15 years. Failure to do so, he said, would result in their loss of privileges under the plan.
"Without the privileges, they will have to pay all the principal and interest incurred," he said.
Sanan expected Finance Minister Korn Chatikavanij to submit the plan before Cabinet next Tuesday.
"Once the Cabinet gives the green light, the plan can be implemented immediately," Sanan said.