Tree bank loan amount increases


[ad_1]

Tree bank loan amount increases

The objective is the planting of young trees of great value

A variety of lucrative trees, including teak and makha wood, are seen in Mae Wong National Park in Nakhon Sawan. THANARAK KHOONTON

The State Bank for Agriculture and Agricultural Cooperatives (BAAC) has increased the maximum loan amount under its tree banking program to 80% of the value of the collateral from 50% to attract more people to cultivate valuable trees.

Members of its tree bank program can apply for loans of up to 80% of the value of the collateral for high-value land and trees, BAAC President Apirom Sukprasert said. Those who only use land are entitled to loans of 50% of the value of the collateral.

Some 6,000 communities with 150,000 farmers cultivating over 11 million trees are members of the tree bank program.

High-value trees that can be used as collateral to support the loan include teak and Siamese and Burmese rosewood.

If used as collateral, borrowers are not allowed to reduce them over the life of the loan, Apirom said.

In July, the cabinet approved Ministry of Commerce regulations allowing 58 varieties of high-value trees such as teak and Siamese and Burmese rosewood to be used as collateral under the Secure Transactions Act. The new regulations are intended to encourage people to grow more high-value trees on their land for income.

Mr. Apirom said BAAC can allow tree bank borrowers to use high-value trees as collateral without waiting for ministerial regulations to be enforced, which are expected to be considered by the National Legislature shortly.

In another development, BAAC signed a memorandum of understanding with the Thailand Research Fund to use research and innovation in strengthening the local economy.

The Sufficiency Economy philosophy will be taken into account in this research and innovation, Apirom said.

BAAC plans to choose communities to develop as prototypes with 30 learning centers adopting research to help build communities, he said, with 600 communities in the initial phase.

[ad_2]