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BOT extends debt clinic scheme until June next year


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BOT extends debt clinic scheme until June next year 

By The Nation

 

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The central bank has just evaluated its debt clinic scheme, which offered a rate cut and debt moratorium from April to September, and the committee in charge of the project was satisfied with the outcome, Thanyanit Niyomkarn, Bank of Thailand (BOT) assistant governor, said on Saturday.

 

About 94 per cent of retail debtors were still able to pay their debt instalments while only 6 per cent had to avail of a debt moratorium.

 

Looking ahead, the economic outlook for Thailand is not bright and subject to uncertainty. The committee has, therefore, decided to extend the debt clinic until June next year, she said.

 

Regarding the debt clinic operation, Thanyanit said that the 2 per cent rate cut incentive had encouraged the majority of debtors to continue their debt payments between April and September. Nearly 74 per cent of them could fully pay the instalments, while 20 per cent could pay partially.

 

The rate cut and debt moratorium helped lessen the burden on people hit hard by the Covid-19-induced crisis, she said.

 

The committee predicted that those who face declining income or lost their jobs would enter the debt cycle if the central bank and financial institutions did not provide them financial aid.

 

So those who were unable to repay their debt could register for help with the debt clinic on website: www.คลินิกแก้หนี้.com by November, she said.

 

They will be allowed a debt holiday until June next year.

 

Those could pay partial instalments would receive a rate cut between 1 to 2 per cent in order to enhance their ability to repay the debt.

 

Those who can pay up to 80 per cent of the debt amount in the next nine months will get a rate cut at 2 per cent. Those who repay between 40 to 79.99 per cent of the debt will get a rate cut of 1 per cent.

 

New debtors who owe money on their credit cards, or personal loans, could apply for help between now and June next year, and will receive a rate cut in the range of 1 to 2 per cent too.

 

As of September, the debt clinic operation covered 24,000 credit cards, covering 8,300 debtors. Each on average has three credit cards.

 

Each has debt of about Bt240,000. Some 900 are waiting for the signing of contracts with financial institutions and 1,200 are in the process of entering the debt clinic at financial institutions. This year, debtors participating in the debt clinic are estimated to be over 10,000, she added.

 

https://www.nationthailand.com/business/30396754

 

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-- © Copyright The Nation Thailand 2020-10-26
 
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  • webfact changed the title to BOT extends debt clinic scheme until June next year
On 10/26/2020 at 10:44 AM, hotchilli said:

Troubling for the future for many.... Thailand has a massive debt crisis looming.

The thing is, it's not just government debt, or corporate debt.  Thailand has record levels of house hold debt.  That's your average Thai.

 

Thailand had a big wealth divide before Covid.  Many average Thai's will be pushed into poverty.  You can expect the protests to get bigger, and louder, and more violent in the future.  

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