The Finance and Education ministries have joined force to help ease teachers' debt problem through refinancing by Government Savings Bank.
Finance Minister Apisak Tantiworawong and Education Minister Gen Dapong Rattanasuwan on Wednesday witnessed the signing of a memorandum between the GSB and the Office of the Committee for the Promotion of the Welfare of Teachers and Educators.
Under the MOU, GSB will provide loans up to a ceiling of 300,000 baht to each teachers who is already indebted to the GSB. The new loans which are charged 4 percent flat rate and payable in 20 years will be used to refinance the old loans with the bank which charged higher interest rates.
However, only teachers who are over 50 years will be eligible to the loans. About 289,000 teachers are expected to join this new loan programme.
The teachers who want the new loans will have to use their contributions in the Funeral Fund as collateral.
GSB director Chartchai Payuhanavichai said that each teacher has an average 900,000 baht contribution in the Fund, but the bank will provide each teacher up to a maximum of 300,000 baht in new loan.
Through this refinancing arrangement, each teacher's debt can be reduced by 250,000 baht immediately and his/her debt repayment burden can be cut by 2,000-4,000 baht per month.
Source: Thai Public Broadcasting Service (Thai PBS)