Thai cabinet approves 60b baht soft loans for lower-income first-home buyers

[BANGKOK] Thailand's cabinet on Tuesday approved soft loans worth 60 billion baht (S$2.34 billion) for lower-income first-home buyers, as it seeks to stimulate a sluggish economy via increased household spending.

Thai finance minister Apisak Tantivorawong told Reuters the measure was approved at a cabinet meeting on Tuesday.

Southeast Asia's second-largest economy is in a slump amid a global slowdown and a decline in exports.

Mortgage approvals can be difficult to get as commercial banks have tightened their grip on lending the number of nonperforming loans has risen.

Earlier this month the finance ministry said applicants for the soft loans must be first-time buyers seeking homes worth not more than 1.5 million baht.

REUTERS