The Bank for Agriculture and Agricultural Cooperatives (BAAC) has prepared 60 billion BTH (1.76 billion USD) to give out as loans to farmers to boost farm productivity.

According to Finance Minister Sommai Phasi, the 60 billion baht loan program is meant to help farmers affected by water shortages. The first 30 billion baht will be given to the farmers as a one-year loan.

The interest rate of 4 percent will be applied for the first nine months. However, no interest will be incurred on for the remaining three months.

The Finance Minister added later that the second portion would be given out on a three-year basis with an interest rate of 7 percent. The BAAC is expected to seek approval for the programme from its board of executives on July 13.-VNA