BANGKOK, Thailand – The Ministry of Finance has ordered reviews on Pico loan conditions and EV after-sales issues to protect debtors and consumers.
Deputy Finance Minister Paopoom Rojanasakul responded to concerns over rising bad debt in the Pico finance sector, which currently stands at 23%. Although many operators are returning licenses, new applicants continue to enter the market. The ministry aims to make official lending more accessible for small-scale borrowers by revising area restrictions and interest rate frameworks. This includes expanding permissible loan areas beyond a single province.
He emphasized balancing financial stability for operators and fair treatment for borrowers.
On another issue, complaints have been filed against the Chinese electric vehicle brand NETA due to missing black license plates, spare part shortages, and prolonged repair delays. Some customers reported waiting months for imported parts, with service centers closing and refusing warranty claims. About 25,000 NETA EVs are on Thai roads, with issues reportedly starting in 2024 after liquidity problems emerged at NETA’s headquarters in China.
Paopoom acknowledged this was a brand-specific issue but said the government must consider ways to assist EV buyers when companies fall short. NETA received over 2 billion baht in subsidies to localize production and reduce imports. The ministry will review consumer protections across the EV ecosystem to address these problems systematically.
He also noted that government agencies have submitted requests totaling 400 billion baht from a central budget of 157 billion baht. The budget subcommittee is currently screening investment projects for submission to the Economic Stimulus Board and the Cabinet within this month. The goal is to roll out economic stimulus measures by early next month. (NNT)
