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Thai Credit Cards Project Brings Risk

Farmers are warned to avoid falling into debt through inappropriate spending on the special credit cards the new government plans to issue them.

The cards are supposed to be used only for production essentials but ways could be found to use them to raise cash for spending on unnecessary luxury items, said Prasit Boonchuey, the president of the Thai Farmers Association.

The government intends the card to be used only to buy fertilisers, pesticides and fuel but there are loopholes for holders to get benefits that may not match the government’s purpose.

For instance, farmers may agree with traders to enter trade deals without actual transactions so they can obtain cash to buy other items.

“Most farmers cannot manage their money,” said Mr Prasit. “You can see from the Village Fund, where villagers spent the money on luxury products instead of investing to generate income.

“I am worried that history will be repeated through collusion between farmers and traders. Then farmers will be indebted.”

Mr Prasit says he will propose that the government find other methods to reduce costs for farmers.

Source: Bangkok Post

Joe Miller
the authorJoe Miller
I have been living in Thailand for over 20 years and witnessed the many changes the country has undergone since the Asian Financial Crisis. I have spent time in Phuket, Samui, Hua Hin, and Chiang Mai, but I gravitate back to Bangkok when all is said and done. It is here that I spent years running a software development company and teaching at universities. These days I live on the Internet with Bangkok as my base. I never stopped believing in the enormous potential of Thailand's kingdom, which is why I joined the ThaiVest Team.

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