Mr. Ronnadol Numnonda, Deputy Governor, Financial Institutions Stability The Bank of Thailand (BOT) revealed that due to the mutation situation of the coronavirus disease 19 (Covid-19), causing the epidemic to be highly uncertain. and tends to be longer and more volatile than expected impact on the Thai economy more severely Each sector of the economy has slowed and unequal recovery. or short-term debt restructuring Therefore, it does not answer the question that will allow all parties to go through this crisis.
Therefore, the Bank of Thailand and the Thai Bankers’ Association Agree to push for measures to improve debt restructuring for long-term sustainable debtors. This is in line with the debtor’s income forecast, for example, during the period when the debtor’s income has not returned and it may take a long time to recover. Debt repayment obligations should be low and gradually increase in the next period.
but not a temporary moratorium on debt The guidelines for assistance are in accordance with the BOT’s press release on additional measures to promote assistance to debtors. affected by COVID-19 Sustainable on August 20, 2021 in the past
As for the news about the reduction of principal and interest (haircut), the Bank of Thailand and the Thai Bankers’ Association would like to inform that in the past, both agencies have discussed closely. and agreed that the measures should be accelerated that came out to help debtors during this covid situation was successful to be able to support the debtor who is actually facing problems under the key principles by debtors who have suffered from the problem of COVID-19 Deserves help as much as possible and is consistent with the problem. It must also not incentivize unaffected debtors to stop paying debt (moral hazard) so that financial institutions can be an important mechanism and have the power to help debtors who have suffered and be a target. sufficient and thorough
“In order to comply with the intention of delivering additional assistance to debtors in times of crisis, the BOT has considered adjusting the regulatory regulations to facilitate various assistance. continuously including reducing access restrictions to measures such as providing flexibility in enforcing classification and provisioning rules To reduce the cost burden of financial institutions that provide assistance to debtors rather than extending the repayment period alone. and extending the period to reduce the remittance rate to the FIDF fund to 0.23% until the end of 2022 to enable financial institutions to pass on the reduced costs to continuously mitigate the impact on businesses and people.”
Phayong Srivanich, president of the Thai Bankers’ Association, said the bank would expedite the implementation of additional aid measures. It is a guideline to help debtors. Each bank will come up with measures as an alternative to help debtors (product programs), especially debt restructuring to be in line with the problems of each group of debtors quickly. in order for all debtors to be able to support their business through this crisis
The issuance of a product program to improve the debt structure of each bank There will be a variety and correspond to the problems of each debtor, each group, and it is fair to both the debtor and the creditor. To provide assistance to the targeted debtor group is truly effective.
