The Bank of Thailand (BoT) has implemented a new auto loan debt mediation program, aiming to help 100,000 borrowers ease their debt burden during the COVID-19 pandemic. The BoT and auto loan creditors plan to offer the scheme until July 31st.
BoT assistant governor Thanyanit Niyomkarn said the scheme covers borrowers whose debt is not classified as non-performing and their cars have not been seized, those who have had their cars seized, but the vehicles have not yet been sent to auction and those whose cars have been repossessed and sold, leaving a debt balance outstanding.
There are 12 car loan providers joining the mediation program, representing 65% of total outstanding auto loans the country. The BoT expects some 100,000 auto loan accounts, or 38 billion baht worth of outstanding debt, to participate in the program.
Mrs. Thanyanit said the central bank is also considering adjusting some car auction rules, to ensure fairer treatment of borrowers, and has also talked to loan providers about offering a debt haircut to borrowers after car auctions. (NNT)
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