On Dec. 13, Thai CB wrote to guide on giving assistance to debtors.
Thai CB issued circular with guidelines for supporting individual and SME borrowers.
Guidelines are for commercial banks, financial groups, specialized FIs, to address household debt issues for long-term economic stability, improved financial well-being.
Overview of Guidelines
The measures aim to support low-income households, SMEs still recovering unevenly.
Key measures, pay on-time, retain wealth and pay off, close debt were introduced.
Pay on-Time, retain wealth focuses on debt restructuring with reduced instalments, interest, prioritizing principal repayment for borrowers with overdue payments.
Pay off, close debt measure supports borrowers with non-performing loans (NPLs) and low outstanding balances, less than THB 5k to fully repay and close accounts.
Borrowers participating in these programs must adhere to specific conditions, such as restrictions on new loans for 12 months (except for SMEs needing liquidity).
Violations of program terms may result in removal, reinstatement of prior obligations.
FIs are required to report progress to the Thai CB as well as communicate the measures clearly to borrowers, ensuring they understand the terms and conditions.
Effectiveness
Borrowers can opt into the programs between Dec. 12, 2024, and Feb. 28, 2025, with measures taking effect on Jan. 1, 2025.
