The Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Co-operatives (BAAC) have stated their determination to prevent borrower loans from becoming non-performing loans (NPLs).
The issue became more pressing as the pandemic led to growing unemployment and disruptions to the ability of those taking out loans to repay their debts.
The administration had previously made moves to help those affected, such as by freezing loan payments and providing additional loans.
According to the BAAC, out of 12.47 million emergency loan contracts worth 1.58 trillion-baht, 5.83 million are at risk of becoming NPLs.
The BAAC nevertheless said the government will step in and absorb 30% of the value of NPLs, in order to stave off potentially serious financial risks to state banks.
The BAAC also said it will help its NPL-risk customers by freezing loan payments for half of the amount of the principal debt while restructuring the other half.
The GSB meanwhile said its NPL rate is currently at 2.7%, up from 2.5% last year. It noted that most of its NPLs stem from the government’s policy to provide emergency loans of up to 10,000 baht under a budget of 30 billion baht. (NNT)
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