BOT Announces 3rd Phase Debt Relief for 4 Loan Types

Mr. Ronadol Numnonda, Deputy Governor Financial Institutions Stability​ of the Bank of Thailand (BOT), stated that the central bank has collaborated with financial institutions through eight associations and clubs, to issue the third phase of retail debtor assistance measures to alleviate the suffering of debtors affected by the coronavirus epidemic situation.

 

The measure will raise the level of the original measures to respond to the more severe situation, focusing on reducing the debt burden in the long term with flexible options and a clear practice, which will enable a proper assist to debtors.

 

Affected debtors can request assistance from 17 May – 31 December 2021 through various channels of financial service providers.

 

The measure will cover 1) Revolving & Installment Loan, 2) Auto Title Loans, 3) Auto Rent and Purchasing, 4) Home Loans and Reverse Mortgage.

 

The Bank of Thailand stated that uncertainties for the situation of the epidemic of Covid-19 were still high. The new wave of the outbreak is widening and worsening, especially on the service sector, hotels, restaurants, cars, shuttle services, affecting the income of many employees and workers.

There are signs that retail debtors have more difficulty in repayments. The financial institution’s assessment showed that retail borrowers who received assistance from the previous measure continued to need assistance and there are new borrowers who needed assistance this time as well, which is the vulnerability accumulated since the first wave of Covid-19. Thus, BOT needs to help with the debt burden on financial institutions.