Bangkok: The government is making concerted efforts to assist Thai citizens in escaping informal debt, with total assistance now surpassing 2,347 million baht. The “Pico Finance” initiative has reached over 5 million accounts nationwide, facilitating access to financial resources within the system at fair interest rates.
According to Thai News Agency, Ms. Sasikarn Wattanachan, Deputy Government Spokesperson, disclosed that the Ministry of Finance is collaborating with state-owned financial institutions, such as the Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives, to implement measures addressing informal debt issues. These measures include various loan projects like the People’s Bank loan, loans to pay off informal debts, revolving fund loans for poor farmers, and loans to support registered debtors seeking to resolve informal debt problems. Additionally, there is a loan project aimed at job creation, career building, credit establishment, and opportunity creation.
Between December 1, 2023, and May 7, 2025, 75,523 individuals have received approval for assistance, with the total assistance budget exceeding 2,347.96 million baht. This marks an increase in both the number of approvals and the budget from April 24, 2025, with an additional 1,895 individuals approved and a 36.33 million baht increase in the budget.
Simultaneously, the government has actively promoted the ‘Pico Finance’ policy, which supports provincial-level retail loans under supervision. This initiative allows citizens to access financial resources within the system at fair interest rates, reducing dependence on informal debts, which often charge interest rates higher than legally stipulated. Furthermore, it provides a legal pathway for informal creditors to transition into regulated lending businesses.
As of April 2025, there were 1,155 ‘Pico Finance’ licensees across 75 provinces, and by the end of February 2025, over 5,020,906 cumulative loan approvals totaling 49,067.28 million baht had been granted. There remain 375,568 outstanding accounts, with a total of 7,054.58 million baht.
Ms. Sasikarn emphasized that these figures demonstrate the government’s commitment to establishing a stable and accessible financial system for all citizens, including small-time citizens, farmers, and self-employed individuals. The government pledges to continue these policies, ensuring safe and sustainable financial options for the population.