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.
This move aims to make repayments more manageable for debtors, reduce the risk of defaults, and improve the country’s banking sector’s overall health.
Key Takeaways
- Thai banks are restructuring 6.1 million outstanding loans worth 3.4 trillion baht to make repayments more manageable for debtors and reduce the risk of defaults.
- Debtors facing difficulties, including those with missed installments, qualify for debt restructuring, and banks are offering a repayment window of up to five years with an interest rate reduction of 15% per annum for accounts in non-performing loan status.
- The Thai Bankers Association plans to establish a database with alternative credit information to facilitate bank loan access for individuals lacking conventional credit, aiming to prevent reliance on high-interest external loans or loan sharks.
Debtors facing difficulties, including those at risk of non-performing loans, are eligible for restructuring, with options such as reduced interest rates and waived penalties. The association also plans to create a database to help those with limited credit access bank loans without resorting to high-interest external loans or loan sharks.
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.
Source : NNT
