Thailand's Bank for Agriculture Board Broadens Client Base.

Byline: Wichit Sirithaveeporn

Nov. 2--The board of the Bank for Agriculture and Agricultural Co-operatives has approved a proposed legal amendment expanding the bank's power to lend to community entrepreneurs, local administrations and rural businesses.

Varathep Ratanakorn, the deputy finance minister, said the proposed amendments would first have to be approved by the Cabinet before being presented to Parliament for approval.

The BAAC Act prohibits the bank from lending to individuals or juristic persons for non-agricultural purposes, with the state bank's prime role limited to assisting farmers, agricultural co-operatives and farm organisations.

The law was changed several years ago to give the bank added flexibility to lend to farmers to finance small businesses, part of a broader policy aimed at boosting incomes for rural households.

Samran Bhu-anantanondh, an adviser to Mr Varathep, said the BAAC had also started a new programme aimed at helping farmers utilise information technology to improve production and crop planning.

The new Agricultural Information Network will be launched on Nov 12, a joint programme between the BAAC, the Agriculture Ministry and the National Electronics and Computer Technology Centre.