Commercial banks in Thailand are currently in the process of restructuring 6.1 million outstanding loans, totaling 3.4 trillion baht, according to the Thai Bankers Association (TBA). The purpose of this restructuring is to make repayments more manageable for debtors, reduce the risk of defaults, and improve the overall health of the banking sector in the country.
The restructuring initiative is aimed at assisting debtors who are facing difficulties, including those who have missed installments. Qualifying debtors will be offered a repayment window of up to five years, along with a reduction of 15% per annum in interest rates for accounts that are classified as non-performing loans.
Furthermore, the TBA plans to establish a database that will include alternative credit information. This database will help individuals with limited credit access to obtain bank loans without resorting to high-interest external loans or loan sharks. The information in the database will include records of utility payments and vendor incomes, among other factors.
The TBA President encourages customers who are struggling to make their loan payments to contact their banks as soon as possible for advice on debt restructuring. This initiative by the TBA is expected to provide support to borrowers and improve the overall stability of the banking system in Thailand.
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