The Thai Bankers Association (TBA) has revealed that commercial banks in the country are currently in the process of restructuring 6.1 million outstanding loans totaling 3.4 trillion baht. The move allows repayment to become more manageable for debtors, thereby reducing the risk of defaults and enhancing the overall health of the country’s banking sector.
TBA President Phayong Srivanich highlighted the association’s efforts to assist debtors struggling with repayments since the COVID-19 pandemic. These accounts, at risk of becoming non-performing loans (NPLs), are receiving targeted support under responsible lending policies.
Debtors facing difficulties, including those who have missed a single installment, qualify for debt restructuring. For accounts that have already entered NPL status, banks are offering a repayment window of up to five years with an interest rate reduction of 15% per annum. Early repayment penalties will also be waived for participants in the debt restructuring program.
According to the TBA President, customers struggling to make payments are urged to contact their banks as soon as possible for debt restructuring advice. The TBA now plans to establish a database featuring alternative credit information, including utility payment records and vendor incomes, to facilitate bank loan access for those lacking conventional credit, preventing reliance on high-interest external loans or loan sharks. (NNT)
