BANGKOK, Thailand – In a bid to address household debt issues, Thailand’s Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, has tasked representatives from the Ministry of Finance to discuss potential debt relief strategies with the Thai Bankers’ Association. The initial proposals include a three-year moratorium on interest payments and a 50% reduction in principal repayments for borrowers facing financial difficulties, particularly those with overdue debts of 1-3 months.
The proposed measures aim to help approximately one million borrowers maintain their livelihoods while gradually regaining their ability to repay loans. The discussions also involve plans for restructuring debts to facilitate repayment and improving access to additional credit for vulnerable groups. While many financial institutions support these measures, the ultimate decision on new credit approvals will rest with individual banks, based on their assessments of borrowers’ repayment capabilities.
In addition to these debt relief discussions, there will be talks with the Bank of Thailand regarding possible relaxations of loan-to-value (LTV) ratios in the real estate sector, with a goal to finalize details as quickly as possible.
