Due to the mutation situation of the coronavirus disease 19 (Covid 19), the epidemic is 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 in recovery. or short-term debt restructuring Therefore, it does not answer the question that will allow all parties to go through this crisis.
In this regard, the Bank of Thailand (BOT) 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 sustainable assistance to debtors affected by COVID-19 on August 20, 2021.
In the event that there is news about the order to reduce the principal and interest (hair cut), the BOT 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 to help debtors during this covid situation to be successful to be able to support the debtor who is actually facing problems Under the main principle is that debtors who have suffered from the Covid-19 problem deserve the most help and in accordance 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
Mr. Ronadol Numnonda, Deputy Governor for Financial Institutions Stability, the BOT clarified that, “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 continual assistance 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 the extension of the period for reducing the remittance rate to the FIDF to 0.23 percent until the end of 2022 in order for financial institutions to pass on the reduced costs in order to continuously mitigate the impact on the business sector and the public.”
At the same time, Mr. Phayong Srivanich, president of the Thai Bankers’ Association, said, “The Bank will accelerate this additional assistance measure. 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. in order to provide assistance to the targeted debtor groups that are truly effective.”
The Bank of Thailand and the Thai Bankers’ Association We aim to provide debt restructuring measures that are in line with the problems of each group of debtors this time. This will help all debtors to be able to support their business through this crisis together.
Bank of Thailand
Thai Bankers Association
August 24, 2021
Thank you for coming from Bank of Thailand (BOT)
