PATTAYA, Thailand – Bank of Thailand has issued a circular to commercial banks and state-owned financial institutions requesting urgent support measures for businesses and borrowers affected by economic pressures and volatile global energy prices linked to ongoing tensions in the Middle East.
The central bank asked financial institutions to accelerate new lending and ease debt repayment conditions for affected customers by using existing government support mechanisms and financial relief programs.
According to the Bank of Thailand, continued uncertainty surrounding the Middle East conflict has triggered fluctuations in global energy markets, increasing production costs for businesses while putting additional pressure on household purchasing power and living expenses.
Officials warned that the situation is directly impacting liquidity and debt repayment capacity among borrowers, while banks have become increasingly cautious in approving loans for certain sectors.
To ease financial strain, authorities encouraged banks to make greater use of several existing support programs, including low-interest “Soft Loan” schemes from Government Savings Bank designed to lower borrowing costs and pass financial relief on to customers.
The Bank of Thailand also highlighted the “SMEs Credit Boost” initiative, aimed at reducing lending risks for financial institutions and encouraging fresh loans for small and medium-sized businesses, particularly companies seeking to adapt to rising energy costs or improve operational efficiency.
Another key measure involves the “SMEs Secure+” framework, which allows banks greater flexibility in assessing collateral values alongside business cash flow, helping SMEs gain easier access to credit during the ongoing economic uncertainty.
The central bank urged all financial institutions to actively use financial, credit, and regulatory support tools to ensure businesses and households can continue accessing liquidity and funding needed to cope with the energy price crisis.
Authorities added that banks facing regulatory obstacles in offering additional assistance to customers can directly consult with the Bank of Thailand to explore further relief measures while maintaining overall financial system stability.
