Deputy Prime Minister Somkid Jatusripitak yesterday asked the Government Housing (GH) Bank to join the Treasury Department, the National Housing Authority and other agencies to find ways for low-income earners and the elderly to own homes.
He urged the bank to shift its policy from mortgage extensions to promoting home ownership for Thais at all levels, particularly low-income earners and the disadvantaged.
The bank may have to come up with a concept for the new policy with reasonable costs and low lending rates that could allow the poor to live in their own homes, Somkid said.
"From now on GH Bank's procedures may have to change. It's not about analysing credit for high profit, but helping more people to have houses. And the bank has to be able to survive with no bad debts," Somkid said.
Chatchai Sirilai, president of the bank, said that it was ready to follow Somkid's suggestions and expected a clearer picture within two months. Some projects will be able to start with a credit limit of about Bt50 billion to Bt60 billion.
Meanwhile, the bank has approved Bt6 billion in loans under the Baan Pracha Rath project and it believes it will meet its Bt10-billion target by the end of this year.
The bank is also targeting new mortgage lending worth Bt140 billion this year after approving Bt103 billion worth as of August, he said.