Thailand plans $1.7bn of soft loans for property sector

An aerial view of Bangkok’s high-rise residential and office buildings. (Photo: Nutthawat Wichieanbut)

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The government is planning to offer 55 billion baht (US$1.66 billion) of soft loans to support the property sector and help boost the economy, a deputy finance minister said on Thursday.

The plan will be submitted to the cabinet for approval, Paopoom Rojanasakul said in a message to reporters.

Last week, Mr Paopoom said the real estate stimulus measures would target both demand and supply, aiming to prod both property buyers and developers to create a comprehensive impact.

He said new stimulus measures were needed because the existing ones were fully utilised.

The Finance Ministry recently utilised state financial institutions, such as Government Housing (GH) Bank, to support real estate stimulus.

In April, GH Bank launched a low-interest loan programme called "Happy Home" with a total loan amount of 20 billion baht.

This scheme offered flexible lending conditions to help low-income individuals access mortgages, with a maximum loan amount of 3 million baht per person and a fixed interest rate of 3% for the first five years.

However, this programme reached its loan limit.

Deputy Minister of Finance Paopoom Rojanasakul. (Photo: Chanat Katanyu)

Deputy Minister of Finance Paopoom Rojanasakul. (Photo: Chanat Katanyu)

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