FPO grants one pico-finance licence, more to come
The Fiscal Policy Office (FPO) has granted a pico-finance licence to one operator, while 11 other informal lenders that passed inspection will likely be granted licences next Monday when a government project to solve underground-debt problems is launched.
The pico-finance licences allow operators to collect interest on small loans at no more than 36 per cent per annum.
Krisda Chinavicharana, FPO director-general, said the government wanted to have pico-finance operators in every province, as the licences permit the holders to extend loans in their own province only.
So far, about 80 informal lenders have applied for the licences.
The licensing of such operators is aimed at providing an additional means for the poor to gain access to capital, while protecting them from loan sharks and helping to solve the underground-debt problem.
