PM stresses legitimacy for using Social Security funds as loans

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BANGKOK – A recent proposal from the Prime Minister has been in focus after he ordered related agencies to study the feasibility of using Social Security funds as loans for investment. The Prime Minister has stressed that this idea must me thoroughly considered and comply with the law.

The government spokesperson Narumon Pinyosinwat revealed that the Prime Minister Gen Prayut Chan-o-cha has ordered the Social Security Office and related agencies to look into the feasibility of using cash available in Social Security funds. The agencies have been ordered to look into the legal feasibility of using the money to yield maximum benefits to social security benefit holders and the general public.

She said initial studies show the Social Security Fund Act BE 2533 does not authorize the SSO to lend the fund balance as loans, as such action will violate the objectives of the fund. The fact that the SSO is not recognized by the Bank of Thailand as a financial institute also forbids the office to legally offer any loans.

From these conditions, the SSO may use the fund balance in social investment projects, by depositing the loan balance in financial institutes who will be offering this balance as loans on their behalf. However, any of these procedures must be done carefully and in full compliance to the law and existing regulations.