Bangkok: "Suksomruay" has announced that the Government Savings Bank (GSB) board has approved a capital increase under the "Thai Helps Thai: Capital Increase with Half Interest Rate" program. The program initially targets 570 funds across 16 provinces and aims to further drive grassroots economic development by completing the third phase of the capital increase project, totaling 3.4 billion baht, by 2026.
According to Thai News Agency, Ms. Sukhsomruay Wantaniyakul, Minister attached to the Prime Minister's Office and Chairperson of the National Village and Urban Community Fund Committee (NVUCF), chaired the 5th/2026 meeting of the NVUCF to monitor and drive key government policies aimed at upgrading the grassroots economy. The meeting approved the first phase of budget support under the "Thai Helps Thai: Capital Increase, Half Interest" project for 570 village and urban community funds across 16 provinces, totaling 38,530,000 baht.
This approval will assist 45,628 members of the Village and Urban Community Fund in reducing their loan interest burden by a total of 32,204,016.90 baht. The initiative is expected to reduce financial costs, increase liquidity, and enable people to effectively use the funds to expand their businesses, generate income, and improve their quality of life.
The "Thai Helps Thai: Capital Increase, Half Interest Rate" project seeks to alleviate the interest burden on members of village and urban community funds. It supports members by reducing interest payments and increasing working capital for the funds, expanding access to formal financing, reducing reliance on informal lending, and strengthening the grassroots economy sustainably.
Furthermore, Ms. Suksomruay highlighted the restoration and capital increase of 1,000,000 baht, bringing the total to 3.4 billion baht, for the Village Fund-a matter pending since 2012. The Community Development Department (CDD) has been instructed to expedite this process, with central and regional executives mobilized to determine operational guidelines for the third phase of the Village Fund capital increase. For Village Funds ready for operation, an additional capital of 1,000,000 baht will be allocated, with tangible results expected by 2026.
Ms. Suksomruay emphasized that the government prioritizes upgrading the grassroots economy and creating opportunities for people to access capital. The Community Development Department has been tasked with accelerating project implementation to achieve tangible results, making the Village and Urban Community Fund a key mechanism for job creation, income generation, and sustainable economic strengthening of communities nationwide.