The Finance Ministry has planned to propose farmer debt moratorium to the Cabinet for consideration next week.
Deputy finance minister Mr. Julapun Amornvivat said the ministry has initiated discussions with the Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Fiscal Policy Office (FPO) regarding the debt moratorium plan for farmers. Progress has been made in developing the farmer debt moratorium for three years. The plan’s framework is expected to be finalized and presented to the Cabinet in the upcoming week.
For small and medium-sized business operators (SMEs), it is anticipated that a working group will be established to define the debt suspension guidelines for SMEs as quickly as possible.
The initial phase of the debt suspension plan for SMEs will utilize data on debtor groups coded as “21” by the Bank of Thailand. These debtor groups have been adversely affected by the COVID-19 pandemic and account for a credit limit of 300 billion Thai baht, with approximately 3 million accounts.
Most accounts are customers of state financial institutions, with a significant portion belonging to the Government Savings Bank. The debt suspension will cover both the principal and interest payments and will last for one year. Detailed planning is expected to be completed within one month before being submitted for the Cabinet’s consideration. (TNA)
