MICROCAPITAL BRIEF: Thailand Post Offices to Begin Offering Microfinance Services

The government of Thailand recently agreed to allow its network of 1,200 post offices to set up a subsidiary that will offer microloans with interest rates slated to be lower than those offered by commercial banks. Juti Krairiksh, Information and Communications Technology Minister, noted that the subsidiary would initially be capitalized at THB 50 million (USD 1.6 million) from Thailand Post’s own profits and loans from the Government Savings Bank (GSB). The subsidiary aims to deliver loans of THB 10,000 (USD 330) or more to an estimated 18 million low-income earners who do not have access to financial services. Small enterprise development (SED) Company Limited, with a loan portfolio of USD 1.3 million and 4,860 active borrowers, is the only Thai microfinance institution reporting data to the Microfinance Information Exchange (MIX) for 2009.

[1] Bangkok Post. “Thailand Post wins green light to lend to lend” 8 December 2010

http://www.bangkokpost.com/business/economics/210190/thailand-post-wins-green-light-to-lend

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