The Bank of Thailand allowed debtors to refinance and consolidate debts to reduce their loan interest burdens so that they can survive the COVID-19 crisis.
BOT assistant governor Roong Mallikamas supervising the Financial Institutions Policy Group said the central bank supported financial institutions in consolidating mortgage and retail loans to help the debtors who had good repayment discipline or were affected by COVID-19. In this case, collateral from mortgages can be used to reduce interest and installments for a long period.
Besides, BOT eased rules on debt refinancing to encourage financial institutions to compete with each other in debt consolidation for customers. It temporarily suspends any fine on the early repayment of personal loans and nano finance it supervises.
The measures will take effect until Dec 31, 2023. The debt consolidation can cover loans from different financial institutions compared with the previous rule that limited the consolidation within the same financial institutions. (TNA)