The Bank of Thailand (BoT) has announced that it is hosting a new debt mediation event to help vulnerable borrowers and provide debt relief for Thai households.
BoT Deputy Governor Ronadol Numnonda said the central bank, in collaboration with the Ministry of Finance and public and private sector organizations, will hold an online debt mediation event from September 26 to November 20. The mediation will cover seven types of personal loans. products: credit cards and personal loans; automobile loans; bad debts of asset management companies (AMCs); car title loans; motorcycle loans; nano-financing; and all Specialized Financial Institution (SFI) loan products.
According to BoT reports, Thai household debt stood at 14.6 trillion baht. The impact of the Covid-19 pandemic has pushed household debt to over 90% of Thailand’s gross domestic product (GDP), reducing consumer purchasing power and slowing economic growth.
The Deputy Governor advised debtors to attend the event to explore ways to improve their financial situation with their financial institutions. The central bank will also help viable but vulnerable borrowers to restructure their debt to alleviate the country’s growing household indebtedness.
In addition, the central bank extended its long-term debt restructuring program until the end of 2023. The agency also plans to introduce responsible lending criteria this year after introducing a responsible lending framework for reduce the country’s household debt. (NNT)