BANGKOK, Thailand –Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, announced that the government is exploring stimulus measures for the real estate sector. One approach under consideration is granting land-use rights to foreign nationals, allowing them to reside in Thailand. This policy is widely implemented in other countries and could potentially boost demand in Thailand’s real estate market.
In terms of mortgage debt relief, the Government Housing Bank (GH Bank) is currently running a debt restructuring program to assist homeowners. Approximately 100,000 borrowers have expressed interest in the program, with about 10,000 classified as non-performing loans (NPLs). If these borrowers meet the restructuring terms, they may eventually be removed from credit bureau blacklists.
“We are accelerating housing-related measures, but will need to observe their success, especially in the debt restructuring program,” said Pichai. He also invited commercial banks to join the initiative to provide further support.
Flood Relief Measures
In addition, the Ministry of Finance is urgently reviewing measures to provide financial relief to those affected by flooding, particularly in securing long-term, low-interest loans for individuals and small businesses. These funds aim to support access to capital for flood-impacted sectors.
Social Security Contribution Reduction for Flood Zones
Minister of Labor, Pipat Ratchakitprakarn, also announced plans to reduce social security contributions by 2% for both employers and employees in flood-affected areas, as declared by the Department of Disaster Prevention and Mitigation (DDPM). The reduced contributions will be in effect until March 2024.
