The Ministry of Finance is set to discuss with the Bank of Thailand and the National Credit Bureau (NCB) measures to reduce non-performing loans (NPLs) among small and medium-sized enterprises (SMEs) affected by the pandemic, known as Code 21 debtors. The aim is to accelerate the removal of these debtors from the NCB’s blacklist, enabling them to access credit sooner.
Approximately 4 million SME accounts are classified as NPLs under the Code 21 category. Under NCB conditions, these debtors remain on the blacklist for five years, and their information is retained for an additional three years, totaling eight years. The government is looking to shorten this period, arguing it is excessively long given the economic impact of the pandemic.
Deputy Finance Minister Julapun Amornvivat emphasized that the state’s intervention is necessary to support businesses disrupted by the pandemic. However, NCB officials caution that even if Code 21 debtors are removed from the records, stringent bank lending rules may still limit their access to credit.
Julapun also addressed the recent volatility in the Thai Stock Exchange, attributing the fluctuations to domestic political issues rather than fundamental economic weaknesses. He noted that the instability is temporary, and the country’s growth potential remains strong. (NNT)
